Paychex revenue rises 6 percent as payroll company lifts PEO outlook
Paychex raised part of its full-year outlook after quarterly revenue rose 6 percent to $1.63bn, its earnings release shows. Guidance changed.
PEO and Insurance Solutions revenue increased 12 percent to $367.6m. Management Solutions revenue rose 4 percent to $1.21bn. Operating income climbed 14 percent to $619.2m, while diluted earnings per share reached $1.21 from $1.06.
The payroll company now expects PEO and Insurance Solutions revenue to grow 7 to 8 percent this year, up from 6 to 7 percent, while its forecast for interest on client funds rose by $5m at both ends, to $200m to $210m. Total revenue growth remains 5 to 6 percent.
