Paychex Inc. now is a $3 billion company—almost.
The company’s total revenue reached $2.95 billion in fiscal year 2016, or $3 billion rounded.
The Penfield-based payroll and human resources services company on Thursday released its fiscal fourth-quarter results that show growth in both earnings and revenues for the quarter and a new milestone for the fiscal year.
The company reported net income of $178.1 million, or 49 cents a diluted share, up 11 percent up from $161.2 million, or 44 cents a share, a year earlier. The company logged total revenue of $753.9 million, a 9 percent increase.
Analysts had predicted $751.5 million in revenue and earnings of 49 cents, up from 44 cents in the same quarter last year.
Martin Mucci, Paychex president and CEO, said the company was pleased with the strong finish to fiscal 2016 and nearly reaching the $3 billion milestone.
For the fiscal year, net income increased 12 percent to $756.8 million and diluted earnings a share increased 13 percent to $2.09 a share.
“We experienced solid sales execution and strong client satisfaction and retention results, bringing our payroll client base to approximately 605,000 as of May 31," Mucci said. "Our comprehensive offering of human resource outsourcing services continues to benefit from strong demand as reflected in double-digit growth in client worksite employees served.”
The company projected its fiscal 2017 total service revenue to increase 7 to 8 percent, and net income to rise 8 percent.
Shares of Paychex stock (NasdaqGS: PAYX) were up 6 percent midday trading at $59.49.
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