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May 31, 2020

Paychex Q4 2020 Earnings Report

Paychex's fourth quarter and fiscal year 2020 results were released, showing a decrease in revenue and earnings per share for the quarter due to the impact of COVID-19.

Key Takeaways

Paychex reported a 7% decrease in total revenue for the fourth quarter to $915.1 million, with net income decreasing by 4% to $220.7 million and diluted earnings per share decreasing by 5% to $0.61. The results were impacted by the COVID-19 pandemic, which caused business shutdowns and affected sales and financial performance.

Total revenue decreased 7% to $915.1 million.

Net income decreased 4% to $220.7 million.

Diluted earnings per share decreased 5% to $0.61 per share.

COVID-19 pandemic adversely impacted results due to business suspensions.

Total Revenue
$915M
Previous year: $980M
-6.7%
EPS
$0.61
Previous year: $0.63
-3.2%
Gross Profit
$623M
Previous year: $658M
-5.3%
Cash and Equivalents
$905M
Previous year: $674M
+34.4%
Free Cash Flow
$353M
Previous year: $213M
+65.9%
Total Assets
$8.55B
Previous year: $8.68B
-1.4%

Paychex

Paychex

Paychex Revenue by Segment

Forward Guidance

Paychex anticipates impacts resulting from the COVID-19 pandemic based on current assumptions and market conditions for the fiscal year ending May 31, 2021.

Revenue & Expenses

Visualization of income flow from segment revenue to net income