Paychex Q3 2023 Earnings Report
Key Takeaways
Paychex reported an 8% increase in total revenue and a 12% increase in adjusted diluted earnings per share for the third quarter. Management Solutions revenue increased by 7%, and PEO and Insurance Solutions revenue increased by 6%. The company updated its fiscal year 2023 guidance, anticipating Management Solutions revenue to grow by approximately 8% and adjusted diluted earnings per share to grow in the range of 13% to 14%.
Total revenue increased by 8% driven by growth in both Management Solutions and PEO and Insurance Solutions.
Adjusted diluted earnings per share increased by 12% reflecting strong operational performance.
Management Solutions revenue grew by 7% due to increased clients and higher revenue per client.
PEO and Insurance Solutions revenue increased by 6% driven by growth in average worksite employees and wages.
Paychex
Paychex
Paychex Revenue by Segment
Forward Guidance
Paychex updated its fiscal year 2023 guidance.
Positive Outlook
- Management Solutions revenue is now anticipated to grow by approximately 8%.
- Interest on funds held for clients is now expected to be in the range of $100 million to $105 million.
- Other income is now anticipated to be in the range of $10 million to $15 million.
- Adjusted diluted earnings per share is now anticipated to grow in the range of 13% to 14%.
- Other aspects of our guidance for fiscal 2023 remain unchanged from what we provided previously.
Revenue & Expenses
Visualization of income flow from segment revenue to net income