Paychex Q1 Profit Increases, Beats Estimates; Ups FY23 Earnings View

(Adds Outlook)

Paychex Inc. (PAYX) released a profit for its first quarter that increased from last year and beat the Street estimates.

The company's bottom line totaled $379.2 million, or $1.05 per share. This compares with $333.6M, or $0.92 per share, in last year's first quarter.

Excluding items, Paychex Inc. reported adjusted earnings of $371.9M or $1.03 per share for the period.

Analysts on average had expected the company to earn $0.97 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company's revenue for the quarter rose 11.5% to $1.206 billion from $1.082 billion last year.


Looking ahead, for the fiscal 2023, the company now expects its adjusted EPS growth to be in the range 11 percent to 12 percent against its previous guidance of 9 percent to 10 percent.

Analysts, on average, expect the HR technology provider to post EPS of $4.14.

For the full year, the firm also reiterated revenue growth outlook of 7 percent to 8 percent. Analysts, on average, expect the technology firm to register sales of $4.97 billion. For the fiscal 2022, Paychex had recorded total revenue of $4.611 billion.

Paychex Inc. earnings at a glance (GAAP) :

-Earnings (Q1): $379.2 Mln. vs. $333.6M. last year.
-EPS (Q1): $1.05 vs. $0.92 last year.
-Analyst Estimate: $0.97
-Revenue (Q1): $1.206 Bln vs. $1.082 Bln last year.

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