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Paychex Inc. (NASDAQ: PAYX) said on Tuesday that its profit in the fiscal third quarter topped analysts’ estimates. Revenue, the company added, came in line with expectations.  

Paychex shares slid about 5% in premarket trading on Tuesday. Including the price action, the stock is now exchanging hands at £68.28 per share. In comparison, it had started the year at a lower £65.21 per share. The price action should come in handy if you are interested in investing in the stock market.

Paychex Q3 financial results versus analysts’ estimates

Paychex said that its net income in the quarter that concluded on 28th February printed at £252.94 million that translates to 70 pence per share. In the comparable quarter of last year, its net income was capped at £255.82 million or 70.72 pence per share. In the prior quarter (Q2), Paychex net income registered at a lower £201.81 million.

Adjusted for one-time items, the Rochester-based company earned 69.28 pence per share in Q3 versus the year-ago figure of a marginally higher 70 pence per share. Paychex valued its revenue in the recent quarter at £800 million that represents a 3% annualised decline.

According to FactSet, experts had also forecast the company to report £800 million of revenue in the third quarter. Their estimate for adjusted per-share earnings stood at a lower 66.39 pence per share.

Other prominent figures in Paychex earnings report on Tuesday include £611.09 million of management solutions revenue and £180.27 million of revenue (8% lower than last year) from PEO and insurance solutions.

In separate news from the United States, Illumina issued its preliminary figures for revenue in the first quarter and full fiscal year on Tuesday.

Paychex guidance for the full financial year

For the full financial year, the American provider of human resource now forecasts growth in its adjusted per-share earnings to fall in the range of negative 2% to 0%. It now expects revenue to post an up to 1% growth this year.

In its earlier guidance, Paychex had expected an up to 4% decline in adjusted EPS and a 3% decline in revenue in fiscal 2021.

Paychex performed fairly upbeat in the stock market last year with an annual gain of more than 10%. At the time of writing, the Nasdaq listed company has a market cap of £24.56 billion and a price to earnings ratio of 32.22.

The post Paychex reports better than expected profit in the fiscal third quarter appeared first on Invezz.



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