Paychex (NASDAQ: PAYX) reported Q4 EPS of $0.72, $0.05 better than the analyst estimate of $0.67. Revenue for the quarter came in at $1.03 billion versus the consensus estimate of $980.48 million.

Business Outlook:

Our outlook for the fiscal year ending May 31, 2022 (“fiscal 2022”) incorporates current assumptions and market conditions. Changes in the macroeconomic environment could alter our guidance. With consideration of these impacts, our outlook is as follows:

• Management Solutions revenue is anticipated to grow approximately 7%;
• PEO and Insurance Solutions revenue is anticipated to grow in the range of 8% to 10%;
• Interest on funds held for clients is expected to be flat;
• Total revenue is anticipated to grow approximately 7%;
• Adjusted operating margin(1) is anticipated to be approximately 38%;
• Adjusted EBITDA margin(1) is anticipated to be approximately 42%;
• Other expense, net is anticipated to be in the range of $33 million to $37 million;
• The effective income tax rate for fiscal 2022 is anticipated to be in the range of 24% to 25%; and
• Adjusted diluted earnings per share(2) is anticipated to grow in the range of 10% to 12%.

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