Paychex Reports Q4 Earnings; Shares Relatively Neutral

On Tuesday July 1, 2014,

reported its fourth quarter earnings. Shares of the company were neutral in after-hours trading. The company reported fourth quarter earnings per share of $0.40, which was inline with estimates. In addition, the company reported revenue of $639.0 million versus the $617.35 million estimates. Revenue was up nine percent year-over-year. Earnings per share were up five percent year-over-year. The company is expecting full year 215 net income growth of six to eight percent, while it expects total service sales growth to be between eight to ten percent. President and Chief Executive Officer of Paychex

commented, "We are pleased with our strong finish to fiscal 2014. Payroll service revenue continued to advance for the fiscal year, driven by higher revenue per check, client base, and checks per payroll. Our Human Resource Services revenue continued to grow at a double-digit rate, driven largely by demand for human resource outsourcing solutions. We again finished the year with client retention at record levels." Mr. Mucci added, "In fiscal 2014, we continued our investment in software-as-a-service solutions and mobility applications with new product releases that position us for long-term growth. Our focus on client service, coupled with our leading-edge technology and full suite of product offerings, distinguishes us from our competitors and positions us as a valuable partner for small- to medium-sized businesses. The recent launch of our Paychex | IHS Small Business Jobs Index provides data on macro-economic trends, and we are encouraged by results that show a trend of continuing steady growth." Below are the increases in revenue that occurred in each individual sector: • Total service revenue increased six percent; • Payroll service revenue increased three percent; • Human Resource Services revenue increased 10 percent; • Total revenue increased five percent; • Operating income increased eight percent; • Net income and diluted earnings per share both increased 18 percent.