Enter multiple symbols separated by commas

Paychex Profit Climbs but Misses Consensus Estimates

Paychex, a payroll processing company that focuses on small and mid-size companies, said after U.S. markets closed Wednesday that quarterly earnings rose 11%, helped by growth in human resources outsourcing.

The Rochester, N.Y.-based company said profit in its fiscal third quarter ended Feb. 28 rose to $126.6 million, or 33 cents a share, from $114.5 million, or 30 cents a share, a year earlier.

Paychex shares, which gave up 1.26% during the regular session, declined more in after-market trading Wednesday.

Analysts had on average expected the company to earn 35 cents a share before extraordinary items, according to Reuters Estimates. Paychex said the earnings were hit by a one-off litigation reserve of $13 million, or 2 cents a share.

Paychex said its revenue rose 13% in the period to $485.3 million.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • The Jaguari Jacarei river dam, part of the Cantareira System of dams, is shown in Joanopolis, Brazil.

    São Paulo is experiencing a water crisis so bad that experts say it could affect investors internationally.

  • Monopoly board game turns 80.

    Toy maker Hasbro is bringing the Monopoly board game to the silver screen, in a movie about a boy's quest to make his fortune and avoid jail time.

  • Golfer Phil Mickelson is the "unnamed gambling client" mentioned in a plea agreement taken by another man charged in a money laundering case, sources said.

U.S. Video