Paychex, Inc PAYX reported fourth-quarter FY23 revenue growth of 7% year-over-year to $1.23 billion, beating the consensus of $1.22 billion.
Total service revenue grew 7% Y/Y to $1.20 billion.
Segments: Management Solutions revenue grew 7% Y/Y to $905.2 million. PEO and Insurance Solutions' revenue rose 5% Y/Y to $299.5 million.
Operating income increased by 15% Y/Y to $453.3 million, and the margin was 36.9%, up 250 bps. Adjusted EPS of $0.97 was in line with the consensus.
Paychex held $1.6 billion in cash and equivalents. Cash flow from operations was $1.7 billion for the fiscal year.
FY23 Outlook: Paychex expects revenue to grow by 6% - 7% ($5.31 billion consensus), adjusted EPS to grow by 9% - 10% (prior view 13% - 14%) ($4.59 consensus), and Management Solutions revenue to grow by 5% - 6% (prior view ~8%).
Price Action: PAYX shares traded higher by 2.16% at $113.10 premarket on the last check Thursday.
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