The Rochester, NY-based provider of payroll and human resource services reported earnings of 50 cents per share, in-line with analysts' forecasts.
Revenue climbed by 7% to $752.6 million, higher than analysts' estimates for $751.2 million.
The company's revenue was boosted by a 4% increase in payroll service revenue and a 12% increase in human resources service revenue, the company said.
Paychex projected full-year 2016 net income to rise between 8% and 9% and total service revenue to climb by 7% to 8%.
Paychex stock is down by 1.63% to $53.60 in pre-market trading on Wednesday.
Separately, 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.
TheStreet Ratings rates this stock 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 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