PENFIELD (dpa-AFX) - Payroll and human resource service provider Paychex, Inc. (PAYX) Wednesday said third-quarter net income improved to $169.4 million from $160.1 million in the previous year. Earnings per share were $0.46, compared to $0.44 last year.
On average, 22 analysts polled by Thomson Reuters expected earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenue increased to $704.3 million from $650.4 million in the prior year. Total service revenue increased 8 percent from last year to $693.6 million. Analysts expected revenues of $701.16 million.
Looking ahead, the company still expects net income growth of 6 to 8 percent, and total service revenue improvement of 8 to 10 percent.
Martin Mucci, President and CEO, said, 'We continued to make good progress against our initiatives during the third quarter. Selling season execution was strong in new annualized revenue sold. Demand for our comprehensive suite of human resource services continues to advance, and our full service products to help clients navigate health care reform are gaining market acceptance. We are also experiencing gains in the number of worksite employees served through our human resource service solutions.'
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