Paychex (NASDAQ: PAYX) reported Q4 EPS of $0.49, in-line with the analyst estimate of $0.49. Revenue for the quarter came in at $753.9 million versus the consensus estimate of $751.52 million.

Outlook

Our outlook for the fiscal year ending 2017 (“fiscal 2017”) is based upon current market, economic, and interest rate conditions continuing with no significant changes. Our expected full year fiscal 2017 payroll revenue growth rate is based upon anticipated client base growth and increases in revenue per check. Our guidance for fiscal 2017 is as follows:

• Payroll service revenue is anticipated to increase approximately 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 mid-single-digit growth;
• Net income is expected to increase approximately 8%;
• Operating income, net of certain items, as a percent of total service revenue is expected to approximate 38%; and
• The effective income tax rate for fiscal 2017 is expected to be in the range of 35.5% to 36.0%.

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