Paychex Shares Gain After Raising FY22 Outlook Above Consensus - Paychex (NASDAQ:PAYX)

Paychex Inc PAYX reported first-quarter FY22 revenue growth of 16% year-on-year to $1.08 billion, beating the consensus of $1.04 billion. Total service revenue grew 16% Y/Y to $1.07 billion.
Segments: Management Solutions revenue grew 17% Y/Y to $805.5 million. PEO and Insurance Solutions' revenue rose 14% Y/Y to $262.9 million.
The adjusted operating margin expanded 710 bps to 40.9%.
Adjusted EPS of $0.89 beat the consensus of $0.80.
Paychex held $1.2 billion in cash and equivalents and generated $385.6 million in operating cash flow.
These results reflected an improvement in the economy, continued sales momentum, and intense client retention levels driven by ongoing strength in both digital and HR Outsourcing sales and solid growth in the mid-market space.
Outlook: Paychex raised the FY22 revenue outlook from $4.34 billion to $4.38 billion, higher than the consensus of $4.36 billion.
It also raised the adjusted EPS guidance from $3.34 - $3.41 to $3.41 - $3.47 above the consensus of $3.38.
Price Action: PAYX shares traded higher by 5.41% at $113.68 on the last check Thursday.