Paychex (PAYX) Tops Q2 EPS by 2c, Offers Outlook

Paychex (NASDAQ: PAYX) reported Q2 EPS of $0.70, $0.02 better than the analyst estimate of $0.68. Revenue for the quarter came in at $990.7 million versus the consensus estimate of $987.65 million.

Outlook:

Our outlook for the fiscal year ending May 31, 2020 (“fiscal 2020”), is based upon current market expectations and economic conditions continuing with no significant changes. We have updated our guidance as a result of current business trends. Our updated guidance is as follows:

Management Solutions revenue is anticipated to grow in the range of 5% to 5.5%;
PEO and Insurance Services revenue is anticipated to grow in the range of 25% to 30%;
Interest on funds held for clients is anticipated to grow approximately 4%; and
Diluted earnings per share is expected to grow in the range of 9% to 10%.

Other aspects of our guidance for fiscal 2020 remain unchanged from what we provided previously.

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

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