Paychex, Inc. (PAYX) said its third quarter reflected continued growth with 8% in total revenue and double digit adjusted earnings per share. Looking forward, the company updated its fiscal 2023 outlook. Adjusted earnings per share is now anticipated to grow in the range of 13% to 14%. Management Solutions revenue is now anticipated to grow by approximately 8%.
Paychex noted that it has no cash, restricted cash, or investments deposited with Silicon Valley Bank or Signature Bank and the company has met all client fund obligations related to employee payment services and remittances to applicable tax or regulatory agencies.
Third quarter net income increased to $467.4 million from $430.7 million, prior year. Earnings per share increased 8% to $1.29. Adjusted earnings per share increased 12% to $1.29. Analysts on average had expected the company to earn $1.24 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
Third quarter service revenue was $1.35 billion, an increase of 7% over the prior year period. Total revenue was $1.38 billion, up 8%. Analysts on average had estimated $1.36 billion in revenue.
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