Paychex (PAYX) Tops Q3 EPS by 1c, Offers Outlook

(Updated - March 26, 2018 8:28 AM EDT)

Paychex (NASDAQ: PAYX) reported Q3 EPS of $0.63, $0.01 better than the analyst estimate of $0.62. Revenue for the quarter came in at $866.5 million versus the consensus estimate of $854.5 million.

Outlook
Our outlook for fiscal 2018 is based upon current market, economic, and interest rate conditions continuing with no significant changes. Our guidance for fiscal 2018 has been updated from what we disclosed last quarter, now including the impact of the Tax Act and the acquisition of Lessor, and is summarized as follows:

 Payroll service revenue is anticipated to increase approximately 2%;

 HRS revenue is anticipated to increase in the range of 13% to 14%;

 Interest on funds held for clients is expected to increase in the range of 20% to 25%;

 Total revenue is expected to grow approximately 7%;

 Operating income, as a percent of total revenue, is expected to be approximately 38%;

 Investment income, net is expected to be approximately $8.0 million;

 The effective income tax rate is anticipated to be in the range of 28.5% to 29%;

 Net income is expected to increase approximately 13% and adjusted net income(1) is expected to increase approximately 15%; and

 Diluted earnings per share is expected to increase in the range of 13% to 14% and adjusted diluted earnings per share(1) is expected to increase in the range of 15% to 16%.

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

You May Also Be Interested In

• Plexus Corp (PLXS) Tops Q2 EPS by 7c
• Celestica (CLS) Tops Q1 EPS by 14c
• Teradyne (TER) Tops Q1 EPS by 18c