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Paychex reports hike in profits, service revenue in Q3

By NATE DOUGHERTY - 3/27/2013 3:40:32 PM

Paychex Inc. saw its profits and total service revenue rise in the fiscal third quarter.
 
The Penfield-based payroll and human resources services company saw its net income increase 7 percent to $144.5 million in the quarter, while earnings per share increased 8 percent to 40 cents a share. Total service revenue reached $582.4 million, but fell short of analyst estimates.

Analysts had predicted revenue of $592.6 million. The company did beat earnings predictions, as analysts predicted 39 cents a share. Paychex reported its fiscal third-quarter earnings after markets closed Wednesday.

Martin Mucci, Paychex president and CEO, said the company made good progress in the third quarter and saw its checks per payroll increase 2 percent over last year.

“We completed our peak selling season and were pleased with our positive growth in new core payroll sales revenue,” Mucci said.

Paychex’s payroll service revenue increase 2 percent to $393.7 million, and human resources services revenue increased 10 percent to $188.7 million.

Paychex has scheduled a conference fall for 10:30 a.m. Thursday. Mucci will be participating in the call along with Efrain Rivera, senior vice president, CFO and treasurer. The call will be broadcast on the company’s website on the investor relations page.

The company’s stock (NasdaqGS: PAYX) reached $34.98 on Wednesday, hitting a 52-week high. It closed at $34.76.

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