Paychex, Inc. reports developments tied to its human capital management business, including cloud-based payroll and HCM software, HR advisory services, benefits administration, retirement services, insurance solutions, and outsourcing through administrative service organization and professional employer organization offerings.
Recurring updates cover quarterly results, dividend actions, product integrations such as embedded on-demand pay for PEO worksite employees, governance recognition, and the Paychex Small Business Employment Watch, which uses payroll data from U.S. small business clients to report employment, wage, and hours-worked trends.
Jones Lang LaSalle announced the appointment of Efrain Rivera as an independent Board member effective Oct. 1, 2021. Rivera is the CFO of Paychex and has over 20 years of experience at Bausch & Lomb. His extensive financial expertise is expected to benefit JLL's growth. JLL, a Fortune 500 firm with $16.6 billion in 2020 revenue, operates in over 80 countries. Rivera joins a seasoned board that aims to leverage his global finance and operations experience to enhance JLL's operational platforms.
Paychex has been recognized as the largest 401(k) recordkeeper in the U.S. for the 11th consecutive year, managing over 90,000 plans according to PLANSPONSOR magazine's annual survey. In 2020, the company added 16,427 new plans, ranking second in this category. Paychex offers a range of user-friendly retirement solutions, including a Pooled Employer Plan (PEP) launched in January 2021, attracting over 5,000 clients. The firm emphasizes efficiency, fee transparency, and mobile accessibility to support clients in retirement planning.
ROCHESTER, N.Y., Aug. 3, 2021 /PRNewswire/ -- National job growth in July saw a significant increase, with the Small Business Jobs Index rising by 0.85%, marking the highest level since 2018. The index reached 99.36, up over 5% from last year, signaling a robust recovery from the pandemic. Hourly earnings growth improved to 3.11%, and small business employment surged across all sectors and regions. Arizona led state growth at 101.72, while Dallas and Tampa topped metropolitan areas with indexes above 102.
Paychex, Inc. (Nasdaq: PAYX) announced a quarterly dividend of $.66 per share, payable on August 26, 2021, to shareholders recorded as of August 2, 2021. Additionally, the company authorized a $400 million stock buyback program, which will expire on January 31, 2024. In fiscal 2021, Paychex returned $909 million in dividends, which is 83% of its net income, reflecting the company's commitment to providing shareholder value and supporting long-term growth initiatives.
Paychex, Inc. announced an expansion of its Board of Directors from 9 to 10 members, appointing Kevin A. Price to the new position. Mr. Price, the founder and president of PartsScription, brings over 35 years of experience in executive roles, including managing over $1 billion in business units at Sears Holdings Corporation. His appointment aims to enhance the board's capabilities, providing valuable insights for Paychex as it supports over 710,000 payroll clients.
On June 29, 2021, Paychex reported a 0.26% increase in small business employment growth for June, with a 4.53% rise in the second quarter. The leisure and hospitality sectors saw notable gains, increasing 12.65% quarter-over-quarter. The national jobs index reached 98.52, while hourly earnings grew slightly to 2.84%. All US regions experienced job growth, with the South leading in small business job recovery. The report reflects positive momentum in the labor market as businesses re-open following the pandemic.
Paychex reported strong financial results for the fourth quarter and fiscal year ended May 31, 2021. Total service revenue increased by 14% to $1,014.7 million, while total revenue rose 12% to $1,029.2 million. Operating income grew 18% to $353.8 million, with diluted earnings per share (EPS) up 20% to $0.73. Fiscal year 2021 results showed a stable revenue of $4,056.8 million, with operating income at $1.5 billion. The company anticipates 7% revenue growth for fiscal year 2022 and a 10% to 12% increase in adjusted diluted EPS.
Paychex, Inc. (Nasdaq: PAYX) will announce its fiscal 2021 fourth quarter and full-year financial results on June 25, 2021, prior to market open. The company will host a conference call at 9:30 a.m. ET to review these results, featuring President and CEO Martin Mucci and CFO Efrain Rivera. Paychex, a leader in human capital management solutions, serves over 680,000 payroll clients. Its integrated services support small- and medium-sized businesses across the U.S. and Europe, underscoring its pivotal role in the American workforce.
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The Paychex | IHS Markit Small Business Employment Watch for May reveals that the Small Business Jobs Index moderated slightly, with a 0.07% month-over-month slowdown. Job growth remains steady, but overall growth is hindered by labor shortages and construction industry declines.
While the national index is up 4.58% over the past quarter, construction jobs dropped 1.78%. Conversely, the leisure and hospitality sector gained 1.94% in May and shows a 12.40% increase over the past quarter.