By Sam Boughedda
Investing.com -- Paychex Inc (NASDAQ:PAYX) stock ruse 3.7% after it announced its earnings for the third quarter on Wednesday, topping analyst expectations.
The human resource, payroll, and benefits services provider reported revenue for the third quarter of $1.28 billion, beating analysts' forecasts of $1.22 billion and a 15% growth compared to the prior year. Earnings per share also followed suit, coming in at $1.15, 10 cents above estimates.
The company's revenue growth was driven by factors such as an increase in client bases, growth in checks per payroll, and improved revenue per client
"Our strong results for the third quarter, including double-digit growth in both revenue and earnings are a result of progress against key initiatives," said CEO Martin Mucci.
Mucci also said they had a strong year-end, leading to "a record quarter for new sales revenue and maintaining high levels of client retention."
The company sees the fiscal year 2022 revenue growth between 12% and 13%, with earnings per share anticipated to grow between 22.5% and 23%.
The stock is currently down 0.1% for 2022.