Paychex Q4 Profit Rises - Quick Facts

(RTTNews) - Payroll and human resource service provider Paychex, Inc. (PAYX) Wednesday said fourth-quarter net income increased to $161.2 million or $0.44 per share from $145.9 million or $0.40 per share in the comparable quarter last year.

On average, 21 analysts polled by Thomson Reuters expected earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue increased to $692.2 million from $639.0 million in the prior year. Total service revenue increased 8 percent from last year to $681.4 million. Analysts expected revenues of $690.35 million.

For the fiscal year ending May 31, 2016, the company expects net income growth of 8 to 9 percent, and total service revenue improvement of 7 to 8 percent.

Martin Mucci, President and CEO of Paychex, commented, "We are pleased with our strong finish to fiscal 2015. Payroll service revenue experienced steady growth for the fiscal year, driven by increases in revenue per check and client base. We achieved a milestone of $1 billion of Human Resource Services revenue for fiscal 2015, as strong demand for our comprehensive human resource outsourcing solutions drove double-digit growth. Our sales execution was strong with significant growth in new annualized revenue sold. For the third year in a row, we achieved record levels of client retention."