Analysts are expecting Paychex, Inc. (PAYX) released quarterly numbers Tuesday morning.
The Rochester, New York-based company announced total service revenue of $803.1 million for the three months ended August 31, 2017, an increase of 4% from $773.5 million for the same period last year.
Net income and diluted earnings per share each increased 5% to $227.8 million and $0.63 per share, respectively, for the first quarter. Adjusted net income increased 9% to $222.8 million and adjusted diluted earnings per share increased 11% to $0.62 per share for the first quarter.
Martin Mucci, President and Chief Executive Officer, commented, “We posted solid growth across our major human capital management product lines in the first quarter, in particular our comprehensive human resource outsourcing solutions and our cloud-based time and attendance products continue to perform well."
Paychex also says payroll service revenue was $457.8 million for the first quarter, a 2% increase compared to the same period last year. The increase was primarily driven by growth in revenue per check, which improved as a result of price increases, net of discounts.
During the first quarter, Paychex repurchased 1.6 million shares of its common stock for a total of $94.1 million. No shares were repurchased during the prior year period. In addition, in July 2017, the Board of Directors approved a 9% increase in the quarterly dividend to shareholders to $0.50 per share from $0.46 per share.
Paychex shares acquired $1.75, or 2.9%, to $61.56, within a 52-week trading range of $52.78 to $63.03.
