Paychex stock bounces more than 3% after profit beat, raised full-year outlook

0
20

Shares of Paychex Inc. PAYX, -0.63% jumped 3.2% in premarket trading Wednesday, to bounce off the previous session’s 2 1/2-month closing low, after the human resources outsourcing services company reported fiscal first-quarter profit that beat expectations and raised the full-year outlook, citing “notable strength” in mid-market, retirement and HR solutions businesses. Net income for the quarter to Aug. 31 rose to $379.2 million, or $1.05 a share, from $333.6 million, or 92 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.03 beat the FactSet consensus of 97 cents. Total revenue grew 11.4% to $1.21 billion, above the FactSet consensus of $1.18 billion, as management solutions revenue increased 12.4% to $905.5 million to beat expectations of $871.6 million. For fiscal 2023, the company raised its adjusted EPS growth guidance range to 11% to 12% from 9% to 10%; the FactSet EPS consensus of $4.13 implies 9.5% growth. The company affirmed its revenue growth outlook of 7% to 8%. The stock, which closed Tuesday at the lowest price since July 14, has lost 17.0% year to date while the S&P 500 SPX, +0.16% has shed 23.5%.

This article was originally published by Marketwatch.com. Read the original article here.

Previous articleApple shares lead premarket blue-chip losers on iPhone demand concerns
Next articleLiving With Climate Change: Hurricane Ian: 5 reasons retirement favorite Tampa is increasingly at risk from hurricanes and climate-change impact

LEAVE A REPLY

Please enter your comment!
Please enter your name here