Paychex's stock falls after downbeat profit outlook offsets revenue beat
Shares of Paychex Inc. fell 1.7% in premarket trade, after a slight beat of fiscal second-quarter profit revenue expectations was offset by a downbeat profit outlook. Net income for the quarter to Nov. 30 increased to $217.0 million, or 60 cents a share, from $202.1 million, or 56 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 59 cents, in line with the FactSet consensus. Total revenue increased 7% to $826.5 million, topping the FactSet consensus of $823.5 million, as better-than-expected human resource services revenue offset a slight miss in payroll service revenue. For fiscal 2018, the company expects adjusted EPS to increase 7% to 8%, while the FactSet consensus of $2.39 implies growth of 8.6%.
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