Paychex Tops Q2 Consensus; Raises FY22 Outlook

  • Paychex Inc PAYX reported second-quarter FY22 revenue growth of 13% year-on-year to $1.11 billion, beating the consensus of $1.06 billion. Total service revenue grew 13% Y/Y to $1.09 billion.
  • Segments: Management Solutions revenue grew 14% Y/Y to $832 million. PEO and Insurance Solutions' revenue rose 11% Y/Y to $262.4 million.
  • The operating margin expanded 370 bps to 39.7%.
  • Adjusted EPS of $0.91 beat the consensus of $0.80.
  • Paychex held $1.62 billion in cash and equivalents.
  • Outlook: Paychex raised the FY22 revenue outlook from $4.38 billion to $4.46 billion - $4.50 billion, above the consensus of $4.40 billion.
  • It also raised the adjusted EPS guidance from $3.41 - $3.47 to $3.59 - $3.65, above the consensus of $3.46.
  • Price Action: PAYX shares traded higher by 3.80% at $131.24 on the last check Wednesday.
Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceMoversTechTrading IdeasBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!