Paychex Tops Q4 Aided By Segmental Growth; Issues Upbeat Outlook

• Paychex, Inc (NASDAQ:PAYX) reported fourth-quarter FY22 revenue growth of 11% year-on-year to $1.14 billion, beating the consensus of $1.11 billion. Total service revenue grew 11% Y/Y to $1.13 billion.
• Segments: Management Solutions revenue grew 12% Y/Y to $845.3 million. PEO and Insurance Solutions' revenue rose 10% Y/Y to $284.3 million.
• The operating margin remained flat at 34.4%.
• Adjusted EPS of $0.81 beat the consensus of $0.79.
• Paychex held $1.3 billion in cash and equivalents.
• Outlook: Paychex sees FY23 revenue of $4.935 billion - $4.981 billion above the consensus of $4.880 billion.
• Paychex sees adjusted EPS of $4.11 - $4.15 above the consensus of $4.06.
• Price Action: PAYX shares traded lower by 4.48% at $114.51 on the last check Wednesday.