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Paychex Fiscal 3Q Profit Slips On Investments

The Associated Press

ROCHESTER, N.Y. (AP) — Paychex Inc., which provides payroll and personnel services, said Wednesday its fiscal third-quarter profit fell 8 percent as losses in investment income offset gains in other areas.

For the three months ended Feb. 28, the company earned $130.8 million, or 36 cents per share, compared with $142.5 million, or 39 cents per share in the year-ago period.

Revenue slipped 1 percent to $528.6 million, from $532.2 million a year earlier.

Analysts polled by Thomson Reuters expected a profit of 36 cents on sales of $536.9 million.

The company said combined interest on funds held for clients and investment income sank 57 percent.

Paychex also further cut its sales forecast for the full year ending May 31. It now expects revenue to remain flat to 2 percent lower than last year, compared with a previous estimate of 2 to 4 percent growth.

It still expects net income to fall 5 to 7 percent.

The stock gained 3 cents in aftermarket trading to reach $23.65 after falling 64 cents, or 2.6 percent, to end at $23.62 in the regular session.