Paychex Inc. reported year-over-year increases in second-quarter sales and adjusted net income driven by growth in employees within the firm’s client base and client retention.
For the quarter ended Nov. 30, the company reported revenue of $1.1 billion, up 13 percent from sales of $984 million during last year’s quarter. Adjusted net income was $329.8 million, up 25 percent from adjusted net income of $264.8 million during the same period last year.
On a per-share basis, diluted earnings were 91 cents, up 21 percent from a year ago. Adjusted diluted earnings per share were also 91 cents, up 25 percent from the previous year’s quarter.
The company reported in a release that the environment is more complicated than ever for small- and medium-sized businesses. Trends that emerged during the pandemic continue unabated, particularly the demand for human resource advice and the need for benefits packages that address talent needs.
“We are committed to leveraging our human capital management technology to assist our clients in maximizing efficiency as we continue to introduce innovative, responsive HR products to help businesses address the evolving HR landscape and streamline the employee experience from recruitment to retirement,” said Martin Mucci, Paychex chairman and CEO, in a statement.
Paychex also updated its year-end guidance and now expects year-end revenue to grow 10 to 11 percent, up from previous estimates of 8 percent, and expects adjusted diluted earnings per share to grow 18 to 20 percent this fiscal year, compared with previous estimates of 12 to 14 percent.
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