Paychex Inc Stock Price, News & Analysis

Paychex reported third-quarter results for the period ending February 28, 2021, with total revenue decreasing 3% to $1.1 billion. Operating income remained steady at $468.6 million. Diluted earnings per share declined 1% to $0.97. The company maintained strong client retention and highlighted successful cost-saving initiatives. However, service revenue faced a 2% reduction, attributed to lower employee volumes. Looking ahead, Paychex forecasts total revenue to range from a 2% decrease to flat, amid ongoing COVID-19 impacts.

The Paychex | IHS Markit Business Employment Watch report for March 2021 indicates a notable jobs growth increase across the U.S., with the Small Business Jobs Index rising to 94.25. Although this remains 4.03% below March 2020 levels, the 0.30% month-over-month increase is the highest since 2013. Hourly earnings have grown by 2.98%, while weekly earnings are up 3.58%. The report highlights improvements in leisure and hospitality sectors, particularly in states like Florida.

Paychex, Inc. (Nasdaq: PAYX) will release its fiscal 2021 third-quarter financial results on April 6, 2021, before the market opens. A conference call will occur at 9:30 a.m. ET on the same day, featuring CEO Martin Mucci and CFO Efrain Rivera, to review the results. As of May 31, 2020, Paychex served over 680,000 payroll clients, emphasizing its role in supporting small and medium-sized businesses with integrated human capital management solutions. Investors can access the live call and subsequent on-demand webcast through Paychex Investor Relations.

Paychex has expanded its Paycheck Protection Program (PPP) solutions to include support for the Employee Retention Tax Credit (ERTC). This change allows businesses to utilize both the PPP loan and the ERTC, enhancing financial relief options amid ongoing pandemic challenges. The updated Paychex Flex® platform features tools for tracking payroll and non-payroll costs, helping employers optimize available tax credits and PPP forgiveness. So far, Paychex clients have secured $30 billion in PPP funding, and the company continues to provide crucial support to small businesses through these services.

On March 4, 2021, Paychex announced significant enhancements to its Paychex Flex HR technology platform to address challenges posed by the COVID-19 pandemic. New offerings include a Pooled Employer Plan (PEP) for simplified retirement management, streamlined integrations with Clover and Biz2Credit for payroll processes, and new reporting capabilities focused on diversity and equal pay. These solutions aim to assist businesses in navigating funding security and meeting employee expectations, thereby enhancing operational efficiency in the evolving work landscape.

Paychex and IHS Markit released the February 2021 Small Business Employment Watch, indicating small business hiring is relatively stable, with the Small Business Jobs Index modestly declining by 0.03% to 93.97, 4.43% below pre-pandemic levels. Positive trends include hourly earnings growth at 2.91% and weekly earnings growth surpassing 3% for the first time since September 2020. Despite some regional differences, construction shows strong job growth, leading all sectors.