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May 31, 2023
Paychex Q4 2023 Earnings Report
Paychex reported strong Q4 2023 results, marked by double-digit earnings growth and exceeding $5 billion in full-year revenue.
Key Takeaways
Paychex reported a strong fourth quarter and fiscal year, achieving over $5 billion in total revenue. Total revenue grew by 7% for the quarter and 9% for the fiscal year, driven by growth in management solutions and PEO and insurance solutions. Diluted earnings per share increased by 18% for the quarter and 12% for the fiscal year. The company's outlook for fiscal year 2024 anticipates continued growth in revenue and adjusted diluted earnings per share.
Total revenue increased by 7% to $1.23 billion.
Diluted earnings per share increased by 18% to $0.97.
Management Solutions revenue increased by 7% to $905.2 million.
PEO and Insurance Solutions revenue increased by 5% to $299.5 million.
Revenue by Segment
Forward Guidance
Paychex anticipates continued growth in revenue and adjusted diluted earnings per share for the fiscal year ending May 31, 2024.
Positive Outlook
- Management Solutions revenue is anticipated to grow in the range of 5% to 6%.
- PEO and Insurance Solutions revenue is anticipated to grow in the range of 6% to 9%.
- Interest on funds held for clients is expected to be in the range of $135 million to $145 million.
- Total revenue is anticipated to grow in the range of 6% to 7%.
- Adjusted diluted earnings per share is anticipated to grow in the range of 9% to 10%.
Challenges Ahead
- Changes in the macroeconomic environment could alter our guidance.
- Our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support.
- The possibility of cyberattacks, security vulnerabilities or Internet disruptions, including data security and privacy leaks, and data loss and business interruptions.
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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