By Dean Seal
Paychex lifted its bottom line with higher sales in the fiscal third quarter as the company picked up more clients and raised prices.
The payroll and human-resources company posted a profit of $519.3 million, or $1.43 a share, for the quarter ended Feb. 28. That's up from $498.6 million, or $1.38 a share, in the same period a year earlier.
Stripping out one-time items, adjusted earnings were $1.49 a share. Analysts polled by FactSet had been expecting $1.48 a share.
Quarterly revenue rose 5% to $1.51 billion, in line with analyst projections, according to FactSet.
Paychex said its management-solutions business, which makes up most of its revenue, rose 5% to $1.1 billion as it served more clients and worksite employees for human resources. Revenue per client increased with higher prices and product penetration.
Revenue from its ancillary services was lower due to the expiration of the IRS's Employee Retention Tax Credit, the company said. Paychex offers services that help businesses to identify and claim tax credits.
Total costs were up 4% at $817.2 million from expenses tied to its pending acquisition of Paycor and higher direct insurance costs.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
March 26, 2025 09:02 ET (13:02 GMT)
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