Paychex, Inc. (NASDAQ:PAYX) shares boasted sharp gains Wednesday, on the release of quarterly earnings.
The company announced service revenue was $968.9 million for the three months ended November 30, 2020 consistent with the prior year period. Total revenue decreased 1% from the prior year period to $983.7 million for the second quarter.
Net income increased 5% to $272.4 million and diluted earnings per share increased 4% to $0.75 per share for the second quarter, each compared to the prior year period. Adjusted net income and adjusted diluted earnings per share, both non-GAAP measures, increased 4% from the prior year period to $264.8 million and $0.73 per share, respectively, for the second quarter.
Said CEO Martin Mucci, "Financial results for the second quarter showed continued recovery in our key business metrics. The effects of the COVID-19 pandemic impacted our results and year-over-year comparisons; however, client retention remains strong, and our sales performance has resulted in year-over-year growth in the number of clients sold and serviced.
"We remain focused on providing excellent customer service, human resource expertise, and product innovations to support our clients through the challenges of the pandemic. In addition, our margins have demonstrated sequential improvement as our cost-saving initiatives have proceeded as expected."
PAYX shares gained $3.20, or 3.3%, to $99.83
