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May 31, 2022
Paychex Q4 2022 Earnings Report
Paychex reported strong double-digit service revenue and diluted earnings per share growth.
Key Takeaways
Paychex reported strong Q4 results, with an 11% increase in total revenue to $1.14 billion and a 12% increase in diluted earnings per share to $0.82. The company's Management Solutions and PEO and Insurance Solutions segments both saw double-digit revenue growth. Paychex also continues to invest in its people, products and technology.
Total service revenue increased by 11% to $1.13 billion.
Management Solutions revenue increased by 12% to $845.3 million.
PEO and Insurance Solutions revenue increased by 10% to $284.3 million.
Diluted earnings per share increased by 12% to $0.82.
Revenue by Segment
Forward Guidance
Paychex anticipates continued growth in fiscal year 2023, with management solutions revenue expected to grow 5% to 7% and PEO and Insurance Solutions revenue expected to grow 8% to 10%.
Positive Outlook
- Management Solutions revenue is anticipated to grow in the range of 5% to 7%.
- PEO and Insurance Solutions revenue is anticipated to grow in the range of 8% to 10%.
- Total revenue is anticipated to grow in the range of 7% to 8%.
- Adjusted operating margin is anticipated to be in the range of 40% to 41%.
- Adjusted diluted earnings per share is anticipated to grow in the range of 9% to 10%.
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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