Paychex (PAYX) Reports In-Line Q4 EPS

Paychex (NASDAQ: PAYX) reported Q4 EPS of $0.97, in-line with the analyst estimate of $0.97. Revenue for the quarter came in at $1.23 billion versus the consensus estimate of $1.22 billion.

Business Outlook

Our outlook for the fiscal year ending May 31, 2024 ("fiscal 2024") 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 in the range of 5% to 6%;
• PEO and Insurance Solutions revenue is anticipated to grow in the range of 6% to 9%;
• Interest on funds held for clients is expected to be in the range of $135 million to $145 million;
• Total revenue is anticipated to grow in the range of 6% to 7%;
• Operating margin is anticipated to be in the range of 41% to 42%
• Other income, net is anticipated to be in the range of $30 million to $35 million;
• The effective income tax rate for fiscal 2024 is anticipated to be in the range of 24% to 25%; and
• Adjusted diluted earnings per share(1) is anticipated to grow in the range of 9% to 10%.

(1)

Adjusted diluted earnings per share is not a U.S. GAAP measure. Please refer to the "Non-GAAP Financial Measures" section 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.

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