Paychex is reporting sales and profits that beat Wall Street estimates for its latest quarter.
For the Rochester company’s fiscal first quarter, it earned more than $243 million which is 16 percent higher than a year ago. Earnings per share of 67 cents topped analysts’ average estimate by 2-cents.
Sales were nearly $863 million, up nine percent from last year. That was more than $12 million higher than what Wall Street expected.
CEO Marty Mucci says it was a very strong quarter. He says Paychex benefited in part from the various Human Resources services that it sells to clients.
As one example, he cites the need for sexual harassment training.
“We’re seeing new York and California now already come out with new requirements, they’re expecting sexual harassment training of all businesses, virtually of all sizes. If you supervise or above, you need to have that training; it’ll probably be on an annual basis. So services like our HR outsourcing can really help a small or mid sized business deliver that kind of training to their employees," Mucci told WXXI News.
Mucci says Paychex has also seen revenue growth as the economy improved and its clients have added staff.
Paychex stock on Tuesday closed at $74.78, up $1.06 a share.