LONDON, UK / ACCESSWIRE / July 9, 2018 / If you want access to our free earnings report on Paychex, Inc. (NASDAQ: PAYX), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=PAYX. The Company reported its fourth quarter fiscal 2018 and full fiscal year 2018 operating and financial results on June 27, 2018. The payroll processor and human resources services provider beat revenue estimates. Additionally, the Company provided its guidance for the full fiscal year 2019. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Earnings Highlights and Summary

For the three months ended May 31, 2018, Paychex?s total revenues increased 9% to $871.1 million compared to $798.6 million in Q4 FY18. The Company?s revenue numbers surpassed analysts? estimates of $867.6 million.

For the full fiscal year 2018, Paychex?s total revenues advanced 7% to $3.38 billion compared to $3.10 billion in FY17.

For Q4 FY18, Paychex?s operating income increased 6% to $317.8 million compared to $298.9 million in Q4 FY17. The Company?s operating income, as a percentage of total revenues, was 36.5% in the reported quarter compared to 37.4% in the year ago same period. Paychex?s adjusted operating income increased 6% to $317.8 million on a y-o-y basis.

Paychex?s net income and diluted earnings per share (EPS) both increased 17% to $228.5 million and $0.63, respectively, in Q4 FY18 compared to $195.3 million, or $0.54 per diluted share, in Q4 FY17. On an adjusted basis, the Company recorded EPS of $0.61, up 13% from $0.54 in the year earlier comparable quarter, and meeting Wall Street?s estimates of $0.61.

For FY18, Paychex reported a net income of $933.7 million, or $2.58 per share, compared to $817.3 million, or $2.25 per share, in FY17. The Company?s adjusted EPS advanced 16% to $2.55 compared to $2.20 in FY17.

Segment Results

During Q4 FY18, Paychex?s Human Resource Services (HRS) segment?s revenues increased 17% to $401.0 million compared to $343.7 million in Q4 FY17. The HRS segment?s revenue growth was primarily driven by increases in client bases across certain HCM services, consisting of comprehensive HR outsourcing services, including HROI; retirement services; time and attendance; and insurance services. HROI contributed approximately 8% to the HRS segment?s total revenue growth in the reported quarter.

For Q4 FY18, Paychex?s Payroll Service segment?s revenues rose 3% to $452.4 million compared to $440.9 million in Q4 FY17, primarily driven by a growth in revenue per check, which improved as a result of price increases, net of discounts. Lessor contributed approximately 1% to total payroll service revenue growth in the reported quarter. As of May 31, 2018, including the Lessor acquisition, Paychex served over 650,000 payroll clients.

Financial Position and Liquidity

As of May 31, 2018, Paychex?s financial position remained strong with cash and total corporate investments of $719.7 million and no debt. The Company?s cash flows from operations were $1.3 billion in FY18, which reflected an increase of 33% compared to the prior year, primarily as a result of a higher net income, adjusted for non-cash items and the increase in cash provided by fluctuations in Paychex?s operating assets and liabilities, including income taxes and PEO payroll accruals and unbilled receivables.

During FY18, Paychex repurchased 2.5 million shares of its common stock for a total of $143.1 million.

Outlook

For the full fiscal year ending May 31, 2019, Paychex is forecasting its Payroll Service segment?s revenues to grow in the range of 2% to 3%, incorporating a full year of Lessor. The Company?s HRS segment?s revenues are anticipated to increase in the band of 10% to 11%. Paychex?s total revenues, including interest on funds held for clients, are expected to increase in the range of 6% to 7% for FY19.

For FY19, Paychex is projecting operating income, as a percentage of total revenues, to be approximately 37%. The Company?s adjusted net income is expected to increase in the band of 11% to 12%, while its adjusted diluted EPS are estimated to grow by approximately 11%.

Stock Performance Snapshot

July 06, 2018 - At Friday?s closing bell, Paychex?s stock climbed 1.03%, ending the trading session at $69.79.

Volume traded for the day: 2.30 million shares, which was above the 3-month average volume of 2.23 million shares.

Stock performance in the last month ? up 2.53%; previous three-month period ? up 14.94%; past twelve-month period ? up 22.50%; and year-to-date ? up 2.51%

After last Friday?s close, Paychex?s market cap was at $24.35 billion.

Price to Earnings (P/E) ratio was at 28.93.

The stock has a dividend yield of 2.87%.

The stock is part of the Services sector, categorized under the Staffing & Outsourcing Services industry. This sector was up 1.0% at the end of the session.

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