NEW YORK (TheStreet) -- Shares of Paychex (PAYX) - Get Report were higher in pre-market trading on Wednesday as the company posted fiscal 2017 first-quarter results that were above analysts' expectations.
Paychex reported earnings of 60 cents per share, surpassing consensus estimates of 57 cents per share.
Revenue rose 9% year-over-year to $785.5 million, above Wall Street's projected $782.8 million in revenue.
For the same period last year, the Rochester, NY-based company earned 52 cents per share on $723 million in revenue.
Paychex now expects a 2017 net income to increase of about 7%. The company also forecast full-year payroll service revenue growth between 3% and 4%.
Paychex is a provider of integrated human capital management solutions for payroll, HR, retirement and insurance services.
Separately, 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. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings team rates Paychex as a Buy with a ratings score of A+. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that it rates. 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 no company is perfect, currently the team does not see any significant weaknesses which are likely to detract from the generally positive outlook.
You can view the full analysis from the report here: PAYX