- Paychex (NASDAQ:PAYX) is up 5% after reporting beat on both lines in its first quarter earnings results with full-year outlook.
- Revenue of $1.08B (+15.9% Y/Y) beats by $40M. It included management solutions revenue of $805.5M (+17% Y/Y); PEO and insurance solutions revenue of $262.9M (+14% Y/Y).
- "Our sales performance was driven by ongoing strength in both digital and HR Outsourcing sales and solid growth in the mid-market space," says President and CEO Martin Mucci.
- Operating income of $442.9M (+56% Y/Y).
- Adjusted operating margin was 40.9% vs. 33.8% a year ago.
- Adjusted EBITDA was $498.6M (+36% Y/Y).
- The company had cash, restricted cash, and total corporate investments of $1.2B as of Aug. 31, 2021.
- Non-GAAP EPS of $0.89 beats by $0.09; GAAP EPS of $0.92 beats by $0.11.
- Fiscal 2022 Guidance: The company expects its total revenue to grow approximately 8% vs. consensus of +7.37%; management solution sales expected to grow 8%; Adjusted operating margin to increase to the range of 38%-39%; Non-GAAP EPS to grow in the range of 12%-14% compared to the consensus of +11.16%.