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Paychex’s second quarter was positive
Paychex’s second quarter was positive
Listen to this articlePaychex Inc. is going into the holiday season with something to celebrate.
The business services outsourcing company released its second-quarter results Wednesday, showing revenue increased 15 percent over the same time last year, and profits were up, even when subtracting the impact of an acquisition. The quarter ended Nov. 30.
Total revenue was $990.7 million, an increase of 15 percent, with Oasis Outsourcing Group Holdings L.P., purchased a year ago, contributing 9 percentage points to the overall revenue. Profits for the quarter amounted to $258.7 million, representing an increase of 10 percent.
Diluted earnings per share were 72 cents for the quarter, an increase of 11 percent, with adjusted earnings at 70 cents per share.
“During the second quarter, we delivered solid growth across our major business lines,” said Martin Mucci, president and CEO, in an earnings statement. “In particular, our human resource outsourcing services, time and attendance solutions, and retirement services performed well.”
“Our state-of-the-art technology and exceptional service distinguish us in the market as we deliver a more personalized and technology-enhanced experience for our clients and their employees,” Mucci said. Paychex provides human resources, payroll, benefits and insurance services to some 670,000 clients in 100 locations. Founded as a payroll outsourcing company, Paychex has expanded into the other areas, most recently putting emphasis on human resource services.
“We are heavily focused on continued innovation to meet our customers’ and their employees’ evolving needs, simplifying HR complexities and offering solutions to help them thrive and grow,” Mucci said.
The acquisition of Oasis contributed to some other increases – $244.1 million in revenue for professional employer organization and insurance services, an increase of 57 percent over the same period a year ago, with 47 points due to Oasis. Expenses, including amortization of Oasis assets, also rose by 18 percent to $649 million.
In the earnings statement, Mucci predicted the earnings and profit trends would continue through the fiscal year ending in May 2020.
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