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Home>Paychex shares pop more than 4% after earnings beat

Paychex shares pop more than 4% after earnings beat

Paychex shares pop more than 4% after earnings beat

10/03/2017

Shares of payroll processing services provider Paychex Inc. (PAYX) rose more than 4% Tuesday, after the company reported stronger-than-expected earnings for its fiscal first quarter to end August. The company said it had net income of $227.8 million, or 63 cents a share, in the quarter, up from $217.4 million, or 60 cents a share, in the year-earlier period. Adjusted per-share earnings came to 62 cents, ahead of the FactSet consensus of 60 cents. Revenue rose 4% to $816.8 million from $785.5 million, also ahead of the FactSet consensus of $816 million. The company said it now expects full-year revenue to grow about 6%. BMO analyst Jeffrey Silber said the beat was driven by better-than-expected margins and a slightly lower-than-expected tax rate. He noted that guidance was bolstered by strength in human resources services revenue, although the operating margin was revised down to reflect the recent acquisition of HROI and an employee stock-based compensation tax benefit. Paychex shares have gained 3% in 2017, while the S&P 500 has gained 13%.

-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com

 

(END) Dow Jones Newswires

10-03-17 1022ET

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