Paychex Inc. on Wednesday reported its fourth-quarter profit rose 10 percent and its fiscal year revenues topped $3 billion.
The Penfield-based company posted net income of $195.3 million, 54 cents a share, in the quarter. That compares with $178.1 million, or 49 cents a share, a year ago. It logged revenues of $798.6 million, including total service revenue of $784.6 million—both rising 6 percent.
Earnings topped Zacks Consensus Estimate by a penny a share and revenues exceeded expectations of $798 million.
For fiscal 2017, the company posted net income of $817.3 million, or $2.25 cents a share, up 8 percent from $756.8 million in fiscal 2016. Revenues rose 7 percent to some $3.2 billion.
“Fiscal 2017 was another year of solid growth in revenue and earnings. Our business model remains strong as evidenced by our industry-leading margins,” said Martin Mucci, president and CEO.
Payroll service revenue increased 2 percent to $440.9 million for the fourth quarter and 3 percent to $1.8 billion for the fiscal year. The increases were primarily driven by growth in revenue per check, which improved as a result of price increases, net of discounts, the company said. As of May 31, Paychex served some 605,000 payroll clients, flat with a year ago.
The company reported that, as of May 31, cash and total corporate investments totaled $777.4 million and Paychex has no debt.
Paychex expects total revenue, including interest on funds held for clients, and net income to increase 5 percent in fiscal 2018.
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