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Paychex sees 5% boost in profit in Q2

By NATE DOUGHERTY - 12/19/2012 2:51:58 PM

Paychex Inc. had $559.4 million in revenue for the fiscal second quarter, a period in which it saw customer disruption as the result of Hurricane Sandy.

Revenue for the Penfield-based payroll and human resources services company rose 5 percent for the quarter, falling below analyst estimates of $573 million. Net income and diluted earnings per share both increased 5 percent to $147.9 million and 41 cents a share, respectively. Analysts had predicted earnings of 41 cents, up from 39 cents last year.

Martin Mucci, Paychex president and CEO, said the company saw good results from its selling efforts to small businesses and was well-poised for its peak selling season.

“We made solid progress in the second quarter,” Mucci said. “While payroll services revenue grew modestly at 1.4 percent, impacted by client disruptions from Hurricane Sandy, human resources services revenue grew at a double-digit rate as we continue to experience success in selling value-added solutions to our clients. Checks per payroll increased 1.2 percent for the quarter over the previous year.”

In its first quarter, Paychex reported revenue of $578.2 million, up 3 percent but coming in below analysts’ estimates of $584 million. The company reported earnings per share of 42 cents, up a penny from a year ago. That met analysts’ expectations. Net income rose to $153.1 million, up 3 percent.

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