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Paychex revenues, income down in Q3
Paychex revenues, income down in Q3
Listen to this articlePaychex Inc. this week reported third-quarter sales and earnings that fell short of 2020 numbers.
For the quarter ended Feb. 28, the Rochester company reported total revenue of $1.1 billion, down 3 percent from $1.16 billion in the year-ago quarter. Net income for the quarter was $834.5 million, down 5 percent from $877.4 million a year ago. Adjusted net income for the third quarter was $841.6 million, compared with $862.6 million in the same quarter last year.
On a per-share basis, diluted earnings were 97 cents, down 1 percent from a year ago. Adjusted earnings were 96 cents per share.
“Client retention remains strong and at record levels, and our results for the third quarter show that our resilient business model has helped us navigate the uncertainties created by COVID-19,” said Paychex President and CEO Martin Mucci in a statement. “We continue to see progress in our key indicators and remain committed to providing our clients the flexibility, technology and resources they need to respond and adapt to the uncertainties of the COVID-19 environment.”
Company officials said results of operations continue to be impacted by the pandemic, but noted that client retention remains strong and at record levels.
“We’re anticipating client needs with solutions that prepare them for what’s next. Our sales, support, product development and marketing teams carefully listen to customer feedback — bringing to market new tools and technology designed to efficiently manage payroll, staffing, time tracking and scheduling,” Mucci said.
Paychex updated its full-year guidance, expecting revenues to be flat to decrease by 2 percent. Adjusted diluted earnings per share is expected to be in the range of flat to decrease by 2 percent.
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