Paychex announced today its results of operations for the three months ended May 31, 2020 (the “fourth quarter”),and for the fiscal year ended May 31, 2020. See below highlights:
Full Year Fiscal 2020 Highlights
- Total revenue increased 7% to $4.0 billion.
- Operating income increased 7% to $1.5 billion.
- Net income increased 6% to $1.1 billion. Adjusted net income(1) increased 5% to $1.1 billion.
- Diluted earnings per share and adjusted diluted earnings per share(1) each increased 6% to $3.04 per share and $3.00 per share, respectively.
Fourth Quarter Fiscal 2020 Highlights
- Total revenue decreased 7% to $915.1 million.
- Operating income decreased 5% to $299.6 million.
- Net income decreased 4% to $220.7 million. Adjusted net income(1) decreased 3% to $220.6 million.
- Diluted earnings per share decreased 5% to $0.61 per share. Adjusted diluted earnings per share(1) decreased 3% to $0.61 per share.
Martin Mucci, President and Chief Executive Officer, commented, “Fiscal 2020 was on track to be a solid year, reflecting growth across our business. As we began the fourth quarter, COVID-19 caused worldwide business shutdowns directly affecting small and medium-sized businesses, which impacted our business sales and financial performance. Since the end of April, we have seen sequential improvement in our key business metrics across our lines of business.
Paychex estimates that total revenue is anticipated to decline in the range of 2% to 5%. Earnings per share is anticipated to decline in the range of 6% to 10%.
Even though shares of Paychex are down 5% today, the stock still has long-term growth potential.
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