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Paychex reports double-digit earnings and revenue growth in Q3
Paychex reports double-digit earnings and revenue growth in Q3
Paychex Inc. reported an increase in year-over-year sales and earnings for its third-quarter, as businesses shift their focus from staying afloat during the pandemic to a more employee-centric approach.
The business reported before markets opened Wednesday morning that revenues for the quarter were nearly $1.28 billion, up 15 percent from sales of $1.11 billion during last year’s quarter.
Adjusted net income was $419.4 million, up 20 percent from adjusted net income of $348.8 million the prior year.
On a per-share basis, diluted earnings were $1.19, versus diluted earnings of 97 cents during the same quarter last year. Adjusted diluted earnings per share were $1.15 versus 96 cents during the prior year’s quarter.
“Our strong results for the third quarter, including double-digit growth in both revenue and earnings, are a result of progress against key initiatives,” said Martin Mucci, Paychex chairman and CEO, in a statement. “We had a strong calendar year end and selling season, delivering a record quarter for new sales revenue and maintaining high levels of client retention. Our value proposition continues to resonate in the market with our unique blend of innovative Paychex Flex technology and breadth of solutions to help small and mid-sized businesses.”
Mucci added that while the impact of COVID-19 is abating, businesses are still operating in a very complex and volatile environment. Focus is shifting from operational and financial survival during the height of the pandemic back to an employee-centric focus, with attracting and retaining talent, remote work and workplace safety being top areas of concern.
“Now more than ever businesses need trusted partners, like Paychex, to provide them the right human resource technology solutions as well as help them navigate the complex HR landscape,” he said.
The company also updated its annual guidance and now expects revenue growth between 12 to 13 percent and adjusted earnings per share growth in the range of 22.5 to 23 percent.
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