Tue, Oct 1, 8:23 PM (80 days ago)
For the quarter ending August 31, 2024, Paychex, Inc. reported total revenue of $1,318.5 million, a 3% increase from the previous year, driven by growth in Management Solutions and a 7% rise in PEO and Insurance Solutions revenue. Operating income grew 2% to $546.7 million, with an operating margin of 41.5%. Net income was up 2% at $427.4 million, resulting in diluted earnings per share of $1.18. The company's expenses increased by 3%, primarily due to higher PEO insurance costs related to increased employee counts. Cash flow from operations was $546.1 million, down from $693.0 million, influenced by timing in client fund collections. Investing activities included $110.0 million in capital expenditures, while financing activities saw $485.0 million used mainly for dividends and share repurchases. The company maintains a robust liquidity position with over $1.6 billion in cash and investments and $2.0 billion in unused credit facilities. Paychex continues to focus on strategic investments in technology and services to enhance client offerings, despite facing uncertainties from economic fluctuations and regulatory changes.