Paychex Reports Inline Earnings

Paychex PAYX shares are slightly lower in after-hours trading, down a fraction of 1% after it reported quarterly earnings that were inline with estimates. The company reported quarterly earnings of 33 cents per share on $522.7 million in revenues. Wall Street had been expecting earnings of 33 cents per share on $515.5 million in revenues. Martin Mucci, President and Chief Executive Officer, said, “We are pleased with our favorable results for fiscal 2011. Many of our key business indicators improved during the year. Most significantly, checks per client increased 2.1%, payroll services client retention improved two percentage points, and while the sales environment is still challenging, we have seen improvement in the latter half of the fiscal year in our core payroll sales. We increased our investment in product development, reached the highest levels of client satisfaction in our history, and acquired two software-as-a-service companies, SurePayroll and ePlan, to bolster our future growth.”