Paychex reports Q3 adjusted EPS $1.38, consensus $1.37

Reports Q3 revenue $1.44B, consensus $1.46B. President and CEO, John Gibson said, “Total revenue growth in the third fiscal quarter reflected a lower contribution from our Employee Retention Tax Credit (“ERTC”) Service as compared with the prior year period. Excluding this impact, total revenue growth accelerated in the third quarter. We also delivered 7% growth in diluted earnings per share and continued operating margin expansion in the quarter due to ongoing expense discipline during a period of moderating small business employment and wage growth. Small- and medium-sized businesses are dealing with a tight job market for qualified workers, reduced access to affordable growth capital, and inflationary pressures.”