Paychex (PAYX) Tops Q3 EPS by 2c

Paychex (NASDAQ: PAYX) reported Q3 EPS of $0.56, $0.02 better than the analyst estimate of $0.54. Revenue for the quarter came in at $795.8 million versus the consensus estimate of $799.03 million.

Outlook

Our outlook for the fiscal year ending May 31, 2017 (“fiscal 2017”) is based upon current market, economic, and interest rate conditions continuing with no significant changes.

Our guidance for fiscal 2017 is summarized as follows:

• Payroll service revenue is anticipated to increase in the range of 3% to 4%;
• HRS revenue is anticipated to increase in the range of 12% to 14%;
• Total service revenue is expected to increase in the range of 7% to 8%;
• Interest on funds held for clients is expected to reflect upper-single-digit growth;
• Net income (GAAP basis) is anticipated to increase approximately 7% and adjusted net income (non-GAAP)(1) is anticipated to increase approximately 8%.
• The effective income tax rate for fiscal 2017 is expected to be approximately 35%.

For earnings history and earnings-related data on Paychex (PAYX) click here.

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