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March 25, 2020, 8:30 a.m. EDT

Paychex tops profit expectations while revenue matches; stock gains ground

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By Tomi Kilgore

Shares of Paychex Inc. /zigman2/quotes/202030365/composite PAYX +1.18% rose 0.7% in premarket trading Wednesday, after the human resources services company reported a fiscal third-quarter profit that topped expectations, but revenue that matched and provided a downbeat full-year growth outlook. The company said the impact of the COVID-19 virus on market and economic conditions are still uncertain, and could change the financial outlook. For the quarter to Feb. 29, net income rose to $354.5 million, or 98 cents a share, from $324.6 million, or 90 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share of 97 cents was above the FactSet consensus of 96 cents. Revenue grew 7% to $1.14 billion, matching the FactSet consensus. For fiscal 2020, the company expects adjusted EPS growth of about 6%, while the current FactSet EPS consensus of $3.07 implies an 8.1% rise. Revenue is expected to increase 8% to 9%, while the FactSet revenue consensus of $4.12 billion implies 9.2% growth. The stock has lost 29.6% over the past three months through Tuesday, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.06% has dropped 24.1%.

/zigman2/quotes/202030365/composite
US : U.S.: Nasdaq
$ 73.45
+0.86 +1.18%
Volume: 1.47M
Aug. 7, 2020 4:00p
P/E Ratio
24.14
Dividend Yield
3.38%
Market Cap
$26.35 billion
Rev. per Employee
$241,909
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/zigman2/quotes/210599714/realtime
US : S&P US
3,351.28
+2.12 +0.06%
Volume: 2.28B
Aug. 7, 2020 5:10p
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