UPDATE: Paychex Posts Better-Than-Expected FQ1 Profit

Paychex (NASDAQ: PAYX) reported upbeat earnings for the fiscal first quarter.The Rochester, New York-based company posted a quarterly profit of $171.3 million, or $0.47 per share, versus a year-ago profit of $162.8 million, or $0.44 per share. Its revenue climbed 9% to $666.8 million. However, analysts were projecting a profit of $0.46 per share on revenue of $662 million.Payroll-service revenue rose 4.5% to $412.8 million, while human-resources revenue surged 17% to $243.8 million.Total expenses surged 12% to $399.3 million for the quarter. Operating income rose 5% to $267.5 million.As of August 31, 2014, the company had cash and total corporate investments of $955.8 million and no debt. During the quarter, Paychex repurchased 0.9 million shares of common stock for a total of $37.5 million.Martin Mucci, President and Chief Executive Officer, said, “We are pleased with our first quarter results that have provided a strong start for fiscal 2015. Payroll service revenue continues to advance, growing 4.5%, and we continue to see strong demand for our comprehensive suite of human resource outsourcing services. Solid sales execution continued with good progress during the first quarter in both new sales units and revenue.”Paychex also affirmed forecast for the fiscal year.Paychex shares closed at $42.41 yesterday.