NASDAQ$PAYX

Paychex Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Paychex's first quarter results were announced, revealing a 16% increase in revenue and a 56% growth in diluted earnings per share.

Paychex reported a strong start to fiscal year 2022, achieving double-digit growth in both revenue and earnings, driven by economic improvement, sales momentum, and strong client retention.

  • Total revenue increased by 16% compared to the prior-year period.
  • Diluted earnings per share grew by 56% compared to the prior-year period.
  • Management Solutions revenue increased by 17%, driven by client base growth and increased solution penetration.
  • PEO and Insurance Solutions revenue increased by 14%, driven by worksite employee growth and higher average wages.

Headline financials

Total Revenue

$1.08B

Previous: $932M+16.2%
EPS (adj)

$0.89

Previous: $0.63+41.3%
Capital Expenditures

-$30.4M

Previous: -$20.7M-46.9%
Free Cash Flow

$303M

Previous: $191M+58.8%
Net Income

$334M

Previous: $212M+57.7%
Operating Income

$443M

Previous: $284M+56.0%
Gross Profit

$770M

Previous: $625M+23.2%
Cash & Equivalents

$1.1B

Previous: $836M+31.9%
Total Assets

$9.37B

Previous: $8.38B+11.8%
Stock-Based Comp

$12.4M

Previous: $13.3M-6.8%

Revenue & EPS history

Paychex · Revenue · Quarterly

$1.08B

Q1 2022+16.2%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Paychex · $1.08B total across 3 segments · Q1 2022

  • Management Solutions
    $806M+17.2%
  • PEO and Insurance Solutions
    $263M+14.4%
  • Interest on Client Funds
    $14.5M-2.7%

Forward guidance

Paychex updated its outlook for fiscal year 2022, anticipating continued growth and margin expansion.

Tailwinds

  • Management Solutions revenue is now anticipated to grow approximately 8%.
  • Total revenue is also anticipated to grow approximately 8%.
  • Adjusted operating margin is anticipated to increase to a range of 38% to 39%.
  • Adjusted EBITDA margin is anticipated to increase to approximately 43%.
  • Adjusted diluted earnings per share is now anticipated to grow in the range of 12% to 14%.

Headwinds

  • Changes in the macroeconomic environment could alter guidance.
  • Other expense, net is now anticipated to be in the range of $23 million to $26 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.6%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.1%

Avg return

30 days after

36%

26 / 72 earnings

Positive

+10.2%

Q3 2020

Best reaction

-6.3%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-0.5%+2.7%
Q2 2026-1.7%+0.3%-2.7%
Q1 2026-1.3%-3.0%-8.8%
Q4 2025-2.5%-0.6%-4.7%
Q3 2025+4.2%+7.0%-0.6%
Q2 2025+2.7%+4.1%+7.7%
Q1 2025+4.9%+3.3%+3.8%
Q4 2024-5.8%-6.4%+0.6%
Q3 2024-1.1%+0.6%-2.6%
Q2 2024-6.3%-6.0%-4.5%
Q1 2024+3.9%+0.9%-2.8%
Q4 2023+1.0%+0.7%+14.3%
Q3 2023+4.2%+2.2%+0.8%
Q2 2023+1.1%+0.3%+2.8%
Q1 2023+0.1%+1.4%+5.7%
Q4 2022-5.0%-2.9%+7.0%
Q3 2022+3.0%+5.1%-4.4%
Q2 2022+6.2%+7.3%-6.1%
Q1 2022+6.8%+8.3%+14.3%
Q4 2021+2.5%+2.9%+7.6%
Q3 2021-5.5%-4.0%+1.2%
Q2 2021-2.0%-2.4%-10.1%
Q1 2021-1.1%+1.2%+6.3%
Q4 2020-4.2%-5.8%-6.7%
Q3 2020+10.2%+8.2%+14.3%
Q2 2020-0.2%-0.4%+3.6%
Q1 2020+0.8%+1.3%+2.4%
Q4 2019-3.2%-1.5%+2.1%
Q3 2019-1.3%+1.0%+4.6%
Q2 2019+1.0%-4.2%+8.7%
Q1 2019-0.7%-1.1%-11.8%
Q4 2018-1.5%-1.4%+2.8%
Q3 2018-3.1%-0.2%-2.8%
Q2 2018-1.3%-0.5%+0.4%
Q1 2018+4.7%+6.4%+7.9%
Q4 2017-3.3%-3.6%-1.5%
Q3 2017-2.4%-3.5%-2.1%
Q2 2017-0.7%-0.3%-0.7%
Q1 2017-5.2%-4.7%-8.7%
Q4 2016+5.9%+7.0%+5.6%
Q3 2016-0.9%
Q2 2016+2.6%
Q1 2016+4.6%
Q4 2015+1.6%
Q3 2015-4.5%
Q2 2015-1.5%
Q1 2015+3.0%
Q4 2014-1.0%
Q3 2014+0.1%
Q2 2014+4.7%
Q1 2014-0.9%
Q4 2013-2.7%
Q3 2013+0.6%
Q2 2013-2.3%
Q1 2013-3.3%
Q4 2012-2.5%
Q3 2012-2.3%
Q2 2012-0.5%
Q1 2012+1.3%
Q4 2011-3.6%
Q3 2011-3.0%
Q2 2011-1.1%
Q1 2011+2.0%
Q4 2008-1.8%
Q4 2010-1.8%
Q3 2009-5.2%
Q3 2010-5.2%
Q2 2010-3.0%
Q1 2009-5.1%
Q1 2010-5.1%
Q4 2009-5.1%
Q2 2009-5.1%

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