Paychex Posts In-Line Q3 Earnings, Sales Surge

Paychex Inc. (NASDAQ: PAYX) reported in-line earnings for the third quarter.The Rochester, New York-based company reported a quarterly profit of $169.4 million, or $0.46 per share, versus a year-ago profit of $160.1 million, or $0.44 per share.Its revenue climbed 8% to $704.3 million. However, analysts were projecting a profit of $0.46 per share on revenue of $701.16 million.Payroll-service revenue rose 2% to $423.8 million in the quarter, while human-resources revenue climbed 19% to $269.8 million.Its operating income gained 5% to $264.3 million for the quarter.As of February 28, 2015, the company had $1.0 billion in cash and total corporate investments and no debt.Cash flows from operations slipped 2% y/y to $692.8 million for the nine months.During the nine months, the company repurchased 1.7 million shares of common stock for $70.4 million.Martin Mucci, President and Chief Executive Officer, commented, "We continued to make good progress against our initiatives during the third quarter. Selling season execution was strong in new annualized revenue sold. Demand for our comprehensive suite of human resource services continues to advance, and our full service products to help clients navigate health care reform are gaining market acceptance. We are also experiencing gains in the number of worksite employees served through our human resource service solutions."Paychex shares fell 1.05% to $50.76 in pre-market trading.