Paychex's stock surges after revenue beat, upbeat outlook
Shares of Paychex Inc. surged 2.8% in premarket trade Monday, after the human resources services company reported fiscal third-quarter revenue that beat expectations, and provided an upbeat outlook. Net income for the quarter to Feb. 28 rose to $260.4 million, or 72 cents a share, from $202.5 million, or 56 cents a share, in the same period a year ago. Excluding non-recurring items, such as a benefit from recent tax legislation, adjusted earnings per share came to 63 cents, matching the FactSet consensus. Total revenue rose 9% to $866.5 million, as revenue from both its payroll service and human resource service businesses beat expectations. For fiscal 2018, the company expects adjusted EPS growth of 15% to 16% and a revenue increase of 7%, while the FactSet EPS consensus of $2.48 implies 13% growth and the FactSet revenue consensus of $3.35 billion implies 7% growth. The stock had slumped 10.3% over the past three months through Friday, while the S&P 500 had slipped 3.4%.
