Paychex (NASDAQ: PAYX) reported Q3 EPS of $1.15, $0.10 better than the analyst estimate of $1.05. Revenue for the quarter came in at $1.28 billion versus the consensus estimate of $1.22 billion.

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, we have updated our guidance as follows:

• Management Solutions revenue is now anticipated to grow in the range of 12% to 13%;
• PEO and Insurance Solutions revenue is now anticipated to grow in the range of 13% to 14%;
• Total revenue is now anticipated to grow in the range of 12% to 13%;
• Adjusted operating margin(1) is anticipated to be approximately 40%;
• Adjusted EBITDA margin(1) is anticipated to be in the range of 44% to 45%;
• Other expense, net is now anticipated to be approximately $15 million;
• The effective income tax rate for fiscal 2022 is anticipated to be approximately 24%; and
• Adjusted diluted earnings per share(1) is now anticipated to grow in the range of 22.5% to 23%.

Other aspects of our guidance for fiscal 2022 remain unchanged from what we provided previousl

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