Paychex, Inc. (NASDAQ:PAYX) saw shares surge slightly on the release of quarterly numbers.
The company, out of Rochester, New York, announced total revenue of $1.1 billion for the third fiscal quarter, an increase of 7% compared to the same period last year.
Oasis Outsourcing Group Holdings, L.P., acquired in December 2018, contributed approximately 1% to the growth in total revenue compared to the same period last year. Net income and diluted earnings per share each increased 9% to $354.5 million and $0.98 per share, respectively, for the third quarter.
Adjusted net income and adjusted diluted earnings per share, both non-GAAP measures, each increased 9% to $351.2 million and $0.97 per share, respectively, for the third quarter.
CEO Martin Mucci commented, "During the third quarter, we experienced solid growth across our major business lines. We are benefiting from the investments we’ve made in both expanding our product offerings, like Pay-on-Demand, and our technology and mobile app enhancements. We realized continued momentum in the mid-market space and achieved record-level retention rates across many of our services."
Management Solutions revenue was $850.0 million for the third quarter, a 6% increase compared to the same period last year.
Operating income increased 10% to $470.1 million for the third quarter compared to the same period last year. Operating margin was 41.1% for the third quarter, compared to 40.1% for the same period last year.
Earnings before interest, taxes, depreciation, and amortization increased 8% to $520.5 million for the third quarter and EBITDA margin was 45.6% for the third quarter, compared to 45.0% for the same period last year.
Shares gained 33 cents to $59.89.
