Paychex (NASDAQ: PAYX) reported Q3 EPS of $1.29, $0.04 better than the analyst estimate of $1.25. Revenue for the quarter came in at $1.38 billion versus the consensus estimate of $1.36 billion.

Business Outlook

Our outlook for the fiscal year ending May 31, 2023 (“fiscal 2023”) 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 by approximately 8%;
• Interest on funds held for clients is now expected to be in the range of $100 million to $105 million;
• Other income is now anticipated to be in the range of $10 million to $15 million;
• Adjusted diluted earnings per share(1) is now anticipated to grow in the range of 13% to 14%.
• Other aspects of our guidance for fiscal 2023 remain unchanged from what we provided previously.

(1)

Adjusted diluted earnings per share is not a U.S. GAAP measure. Please refer to the “Non-GAAP Financial Measures” section on page 3 of this press release for a discussion of non-GAAP measures.

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