NEW YORK (TheStreet) -- Paychex (PAYX) - Get Report shares are jumping 2.15% to $47 in early morning trading after the payroll and human resource provider reported its fiscal 2016 first quarter earnings results that beat analysts' estimates.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio commented on Paychex earnings saying: "What a terrific quarter for Paychex. It is not waiting for rates to go higher to score here. Marty will be on Mad Money tonight to talk about this fabulous quarter."
For the quarter, the company earned 58 cents a share, beating analysts' estimates of 51 cents a share.
Revenue came in at $723 million, topping analysts' estimates of $717.52 million.
In the same period the previous year, the company earned 47 cents a share on revenue of $666.8 million.
Year over year, service revenue grew 8% and human resource services revenue increased 15%, the Rochester, NY-based company said.
"Fiscal 2016 is off to a good start, and we have continued to experience positive results across our major product lines," CEO Martin Mucci stated.
Additionally, payroll service revenue climbed 5% from the same period last year, helped by growth in revenue per check and client base.
Separately, TheStreet Ratings team rates PAYCHEX INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate PAYCHEX INC (PAYX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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 we do 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