NEW YORK (TheStreet) -- Shares of Paychex (PAYX) - Get Paychex, Inc. Report are climbing 3.46% to $58.08 in mid-morning trading Thursday after the Rochester, NY-based company reported better-than-expected revenue for the 2016 fiscal fourth quarter.
Before today's market open, the company said revenue increased 9% to $753.9 million from last year. This was above Wall Street's expectations of $751.5 million.
Earnings of 49 cents per diluted share matched analysts' estimates.
Payroll service revenue increased 5% to $430.4 million, while human resource services revenue rose 14% to $311.2 million year-over-year.
"We experienced solid sales execution and strong client satisfaction and retention results, bringing our payroll client base to approximately 605,000 as of May 31, 2016," CEO Martin Mucci said in a statement.
For fiscal 2017, Paychex expects total service revenue to increase between 7% and 8% and net income is projected to rise by about 8%.
The company is a provider of payroll, HR and benefits outsourcing solutions for small and medium-sized businesses.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: PAYX