Paychex (PAYX) Tops Q3 EPS by 2c, Offers Outlook
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EPS Growth %: +13.4%
Financial Fact:
Basic earnings per share: 0.6
Today's EPS Names:
BVFL, MCET, REOS, More
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Paychex (NASDAQ: PAYX) reported Q3 EPS of $0.97, $0.02 better than the analyst estimate of $0.95. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.14 billion.
Outlook:
Our outlook for the fiscal year ending May 31, 2020 (“fiscal 2020”) incorporates known and some estimated impacts related to the COVID-19 virus, including the most recent reductions in the Federal Funds rate. The impact from the rapidly changing market and economic conditions due to COVID-19 is uncertain and could impact our results of operations and financial condition in the future. That impact could alter our guidance, which is currently as follows:
- Management Solutions revenue is anticipated to grow approximately 4%;
- PEO and Insurance Solutions revenue is anticipated to grow approximately 24%;
- Interest on funds held for clients is anticipated to decline in the range of 2% to 3%;
- Total revenue is anticipated to grow in the range of 8% to 9%;
- Operating margin is anticipated to be approximately 36%;
- EBITDA margin(1) for the full year fiscal 2020 is anticipated to be approximately 41%;
- Other expense, net is anticipated to be in the range of $22 million to $24 million;
- The effective income tax rate for fiscal 2020 is expected to be in the range of 23.5% to 24.0%;
- Net income and diluted earnings per share are expected to grow approximately 7%; and
- Adjusted net income(1) and adjusted diluted earnings per share(1) are expected to grow approximately 6%.
(1)
EBITDA margin, adjusted net income, and adjusted diluted earnings per share are not U.S. GAAP measures. Please refer to the “Non-GAAP Financial Measures” section on page 4 of this press release for a discussion of these non-GAAP measures and a reconciliation to the most comparable U.S. GAAP measures of net income and diluted earnings per share.
For earnings history and earnings-related data on Paychex (PAYX) click here.
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