Paychex's fiscal 1st-quarter profit up 3 percent
ROCHESTER, N.Y. (AP) — Paychex Inc.'s first-quarter net income increased 3 percent on improved revenue for the payroll and benefits service provider.
The company said that its client base is improving, its payroll check business is up and its client retention is near record highs.
Paychex also reaffirmed its guidance for the year.
The Rochester, N.Y.-based company said that it earned $153.1 million, or 42 cents per share, for the quarter that ended Aug. 31. That's compared with $148.9 million, or 41 cents per share, in the same quarter last year.
Paychex's total revenue increased 3 percent to $578.2 million with gains in both its payroll and human resource services sectors.
Analysts polled by FactSet, on average, were expecting Paychex to earn 41 cents for the quarter on revenue of $584.3 million.
The company stood by its forecast for its 2013 fiscal year. It anticipates its net income will increase 5 to 7 percent. That suggests income of about $575.4 million to $586.4 million; analysts have forecast $581.3 million.
It also expects its total service revenue, which excludes interest revenue, will grow 5 to 6 percent for the year. It said it expects its base of clients will grow and revenue per check will increase, but it anticipates a lower rate of growth in checks per payroll.
Shares of the company fell 17 cents to close at $34.38 and added 4 cents in after-hours trading on the news.