Bulletin
Investor Alert

New York Markets Close in:

Market Pulse Archives

Oct. 6, 2020, 8:42 a.m. EDT

Paychex stock gains after profit and revenue beats, upbeat outlook

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Paychex Inc. (PAYX)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Tomi Kilgore

Paychex Inc. /zigman2/quotes/202030365/composite PAYX -0.24% reported Tuesday fiscal first-quarter profit and revenue that fell less than expected, and provided an upbeat full-year earnings outlook, citing a faster-than-anticipated recovery from the negative effects of the COVID-19 pandemic. The human resources management company's stock edged up 0.2% in premarket trading, after closing Monday at a 7-month high. Net income fell to $211.6 million, or 59 cents a share, from $264.2 million, or 73 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share slipped to 63 cents from 71 cents, but beat the FactSet consensus of 55 cents. Total revenue declined 6% to $932.2 million, but was above the FactSet consensus of $895.4 million, as service revenue of $917.3 million topped expectations of $881.3 million. For fiscal 2021, the company expects adjusted EPS to decline 6% to 8% from a year ago, while the FactSet 2021 EPS consensus of $2.75 implies an 8.3% decline. "The effects of the COVID-19 pandemic continue to impact our results causing unfavorable year-over-year comparisons, however, client retention has remained strong and sales performance is accelerating with year-over-year growth in the number of clients sold," said Chief Executive Martin Mucci. The stock has slipped 4.2% year to date through Monday, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.46% has gained 5.5%.

/zigman2/quotes/202030365/composite
US : U.S.: Nasdaq
$ 93.15
-0.22 -0.24%
Volume: 1.85M
Nov. 30, 2020 4:00p
P/E Ratio
32.16
Dividend Yield
2.66%
Market Cap
$33.57 billion
Rev. per Employee
$241,909
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,621.63
-16.72 -0.46%
Volume: 3.65B
Nov. 30, 2020 5:34p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.