Paychex Leaps On Q2 Results

2024-12-19 03:12:36

(MENAFN- Baystreet) Paychex, Inc.(NASDAQ:PAYX) shares hurtled higher Thursday on reporting results for the fiscal quarter ended November 30, 2024.

CEO John Gibson commented, "We are pleased to report strong financial results for the second quarter of fiscal 2025 with a 5% increase in total revenue. Excluding the impact of the expiration of the Employee Retention Tax Credit program, revenue growth was 7% for the quarter. Additionally, our diluted earnings per share grew by 6% and our operating margins expanded by approximately 60 basis points, despite the ERTC headwind, demonstrating our ongoing efforts to enhance operational efficiency through the strategic use of technology and data."

Total revenue increased to $1.3 billion for the second quarter, growth of 5% over the prior year period.

Operating income grew 6% to $538.1 million for the second quarter. Operating margin (operating income as a percentage of total revenue) was 40.9% for the second quarter compared to 40.2% for the prior year period. Operating income was impacted by the expiration of the ERTC program.

Other income, net was $5.6 million for the second quarter compared to $11.7 million in the prior year period primarily as a result of lower average interest rates earned on our corporate investments as well as lower average investment balances.

PAYX shares captured $2.74, or 2%, to $138.60.

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