Paychex Raises FY24 Earnings Outlook

(RTTNews) - Paychex, Inc. (PAYX) said, for the fiscal year ending May 31, 2024, the company now expects adjusted earnings per share to grow in the range of 10% to 11%. Previously, the company projected adjusted earnings per share to grow in the range of 9% to 11%.

President and CEO, John Gibson, said: "We continue to see demand for our HCM technology, HR and insurance solutions, as businesses struggle to comply with increasing regulations and a challenging HR landscape and labor market."

Second quarter net income was $392.7 million, up 9% from a year ago. Earnings per share increased 9% to $1.08. Adjusted earnings per share increased 9% to $1.08. On average, 17 analysts polled by Thomson Reuters expected the company to report profit per share of $1.07, for the quarter. Analysts' estimates typically exclude special items.

Service revenue was $1.23 billion for the second quarter, a growth of 5% over the prior year period. Total revenue was $1.26 billion, an increase of 6%. Analysts on average had estimated $1.27 billion in revenue.

Shares of Paychex are down 2% in pre-market trade on Thursday.

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