- Paychex Inc (NASDAQ:PAYX) reported third-quarter FY22 revenue growth of 15% year-on-year to $1.28 billion, beating the consensus of $1.22 billion. Total service revenue grew 15% Y/Y to $1.26 billion.
- Segments: Management Solutions revenue grew 13% Y/Y to $959.9 million. PEO and Insurance Solutions' revenue rose 21% Y/Y to $301.7 million.
- The operating margin expanded by 190 bps to 44.1%.
- Adjusted EPS of $1.15 beat the consensus of $1.05.
- Paychex held $1.8 billion in cash and equivalents.
- Chair and CEO Martin Mucci, "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."
- "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," Mucci added.
- Outlook: Paychex raised the FY22 revenue growth guidance from 10% - 11% to 12% - 13%.
- Paychex raised adjusted EPS guidance growth from 18% - 20% to 22.5% - 23%.
- Price Action: PAYX shares traded lower by 0.09% at $132.41 on the last check Wednesday.
