=Paychex (PAYX) reported earnings on Wed 29 March 2017 (b/o)

Paychex beats by $0.01, reports revs in-line; reaffirms FY17 guidance:

• Reports Q3 (Feb) earnings of $0.55 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.54; revenues rose 5.7% year/year to $795.8 mln vs the $799.08 mln Capital IQ Consensus. Total service revenue increased 6% to $782.6 million. Payroll service revenue increased 2% to $446.6 million. Human Resource Services revenue increased 12% to $336.0 million. Operating income increased 10% to $306.6 million.
• Reaffirms FY17 guidance:
  • Payroll service revenue is anticipated to increase in the range of 3% to 4%; HRS revenue is anticipated to increase in the range of 12% to 14%
  • Total service revenue is expected to increase in the range of 7% to 8%
  • Interest on funds held for clients is expected to reflect upper-single-digit growth
  • Net income (GAAP basis) is anticipated to increase ~7% and adjusted net income is anticipated to increase ~8%.