Paychex posted fiscal second quarter earnings of 99 cents a share, topping analysts’ expectations of 95 cents a share (based on FactSet poll). The figure is also higher than the year-ago quarter’s 91 cents a share.
The human resources company’s revenue rose +7% from the year-ago quarter to $1.19 billion, r in line with analyst expectations, (according to FactSet).
Paychex now expects adjusted earnings per share growth between 12% and 14% for the fiscal year ending May 31, boosting its outlook from prior guidance of 11% to 12%.
The company now projects revenue growth of 8%, vs. prior forecast of 7% to 8% growth. It also raised its forecast for management solutions segment growth to between 7% and 8% while lowering growth expectations for its professional employer organization and insurance solutions business to between 5% and 7%.