Paychex (PAYX) - Get Report shares slipped on Wednesday after the payroll-software and -services provider reported fiscal-fourth-quarter earnings short of analysts' forecasts and provided a less-rosy outlook.
For the quarter ended May 31, the Rochester, N.Y., company reported net income rose 5.8% to $230.4 million, or 64 cents a share, from $217.7 million, or 60 cents, in the year-earlier period.
Accounting for nonrecurring items and other adjustments, Paychex earned 63 cents a share, a penny below the FactSet consensus estimate of 64 cents.
Revenue advanced 16% to $980.4 million, against the FactSet forecast of $979.4 million.
In December Paychex closed the $1.2 billion acquisition of HR-outsourcing services provider Oasis. "The integration of Oasis is on track, and we expect this acquisition will be an important contributor to our longer-term growth," Chief Executive Martin Mucci said in a statement.
For fiscal 2020, Paychex now expects adjusted earnings-per-share growth of 8% to 9%.
While the company did not provide a per-share range, analysts polled by FactSet are currently expecting full-year earnings of $3.10 a share, which would come in above 9%. In fiscal 2019, the company earned an adjusted $2.84.
Shares of Paychex were trading down 1.7% at $83.38.