Paychex reported better-than-expected adjusted third-quarter earnings and met revenue estimates set by Wall Street analysts.
For the three months ended Feb. 28, net income eased 1.1% to $350.5 million from $354.5 million in the year-earlier period. Adjusted earnings were 96 cents a share compared with 97 cents a year earlier.
Revenue fell 2.6% to $1.11 billion from $1.14 billion.
A survey of analysts by FactSet produced consensus estimates of adjusted earnings of 92 cents a share on revenue of $1.11 billion.
For fiscal 2021 ending May 31, Paychex expects both revenue and adjusted earnings per share to range flat with to down 2% from fiscal 2020.
Shares of the Rochester, N.Y., company at last check slipped 5.7% to $94.62. The stock on Monday touched a 52-week high $101.15. The 52-week low, $60, was set last May.
"Client retention remains strong and at record levels, and our results for the third quarter show that our resilient business model has helped us navigate the uncertainties created by COVID-19," President and Chief Executive Martin Mucci said in a statement.
"We continue to see progress in our key indicators," Mucci added.
Paychex provides comprehensive payroll and integrated human resource and employee benefits outsourcing solutions for small to medium-sized businesses.
The company's services range from calculating payroll and filing tax payments to administering retirement plans and workers' compensation.