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Paychex revenue rises 8%, HR services up 19%

March 25, 2015

Paychex Inc. (NASD: PAYX), a provider of payroll services and PEO services, reported revenue rose 8% to $704.3 million in its fiscal third quarter ended Feb. 28.

The company includes PEO revenue in its human resource services segment, which posted a 19% increase in revenue in the third quarter to $269.8 million. Paychex reported growth in the segment was positively affected by its minimum premium plan health insurance offering for PEO clients and worksite employees. The plan contributed five percentage points of growth in the human resource services segment.

Net income rose 6% to $169.4 million.

Paychex reports revenue in its human resource services segment is expected to increase between 16% and 19% for the fiscal year ending May 31.

Paychex shares fell 3.63% to $49.47 in early afternoon trading. The company had a market cap of $17.97 billion.