Paychex Q1 Net Income Rises - Quick Facts

(RTTNews) - Paychex, Inc. (PAYX) reported first-quarter net income of $209.1 million or $0.58 per share compared to $171.3 million or $0.47 per share, last year. The company noted that its net income and earnings per share were positively impacted by a net tax benefit recorded for income derived in prior tax years, which resulted in an increase in earnings per share of approximately $0.06 for the first quarter. Excluding the net tax benefit, net income and earnings per share would have increased 11%.

On average, 19 analysts polled by Thomson Reuters expected the company to report profit per share of $0.51 for the quarter. Analysts' estimates typically exclude special items.

Total revenue was $723.0 million compared to $666.8 million, a year ago. Analysts expected revenue of $717.55 million for the quarter. Total service revenue was $712.2 million, an increase of 8% from $656.6 million, last year.

For fiscal 2016, the company expects: total service revenue to increase in the range of 7% to 8%; and net income to increase in the range of 8% to 9%. The company noted that the net income guidance excludes the impact of the net tax benefit related to prior tax years that was recorded in the first quarter.