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Aug 31, 2021
Paychex Q1 2022 Earnings Report
Paychex's first quarter results were announced, revealing a 16% increase in revenue and a 56% growth in diluted earnings per share.
Key Takeaways
Paychex reported a strong start to fiscal year 2022, achieving double-digit growth in both revenue and earnings, driven by economic improvement, sales momentum, and strong client retention.
Total revenue increased by 16% compared to the prior-year period.
Diluted earnings per share grew by 56% compared to the prior-year period.
Management Solutions revenue increased by 17%, driven by client base growth and increased solution penetration.
PEO and Insurance Solutions revenue increased by 14%, driven by worksite employee growth and higher average wages.
Revenue by Segment
Forward Guidance
Paychex updated its outlook for fiscal year 2022, anticipating continued growth and margin expansion.
Positive Outlook
- Management Solutions revenue is now anticipated to grow approximately 8%.
- Total revenue is also anticipated to grow approximately 8%.
- Adjusted operating margin is anticipated to increase to a range of 38% to 39%.
- Adjusted EBITDA margin is anticipated to increase to approximately 43%.
- Adjusted diluted earnings per share is now anticipated to grow in the range of 12% to 14%.
Challenges Ahead
- Changes in the macroeconomic environment could alter guidance.
- Other expense, net is now anticipated to be in the range of $23 million to $26 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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