Paychex Tops Q1 Consensus; Boosts FY23 EPS Forecast

Paychex, Inc PAYX reported first-quarter FY23 revenue growth of 11% year-on-year to $1.21 billion, beating the consensus of $1.19 billion. Total service revenue grew 11% Y/Y to $1.19 billion.
Segments: Management Solutions revenue grew 12% Y/Y to $905.5 million. PEO and Insurance Solutions' revenue rose 8% Y/Y to $282.8 million.
The operating margin of 41% increased compared to the prior year period.
Adjusted EPS of $1.03 beat the consensus of $0.97.
Paychex held $1.3 billion in cash and equivalents.
Outlook: Paychex reiterated FY23 revenue of $4.935 billion - $4.981 billion versus the consensus of $4.97 billion.
Paychex raised adjusted EPS growth guidance to 11% - 12%, up from 9% - 10%.
Price Action: PAYX shares traded higher by 2.78% at $116.46 on the last check Wednesday.

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