Paychex Makes Solid Progress in Q2 2012
Obviously things are going very well for Paychex, Inc., a provider of payroll, human resource and benefits outsourcing solutions, for it has experienced positive trends on all fronts. Even Martin Mucci (News - Alert), president and CEO, appeared to agree about the company’s solid progress in the second quarter of 2012.
Paychex’s total services revenue increased with gains on both fronts- payroll services revenue grew at a modest 1.4 percent and this was attributed chiefly to the impact by client disruptions from Hurricane Sandy, while the double digit growth in human resources revenue was said to be an offshoot of the company’s success in selling value-added solutions to its clients.
The total revenue for Q2, ending November 30, 2012, and total revenue for six months ending the same period, showed an increase when compared to the respective year ago periods.
In addition, the company said that its payroll check business was strong and moving ahead and its client retention levels were high as employees’ commitment to client satisfaction peaked.
The New York based company indicated that its income for the quarter ending November 30, 2012 was $147.9 million, or 41 cents per share, compared to $140.4 million, or 39 cents per share for the same year ago period. The net income for six months ending the same period was again higher than that of the six months ending November 30, 2011. Share prices also showed a marginal rise.
Another achievement was the acquisition of ExpenseWire, an online expense management solution and the introduction of the company’s industry-leading online client report center.
"We are seeing good results from our selling efforts in the small business market and are well-positioned for our peak selling season,” observed Mucci, on a very optimistic note, indicating that it may well be the trend for the coming year.
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Edited by Rich Steeves