Paychex reports Q3 EPS $1.29, consensus $1.24

Reports Q3 revenue $1.38B, consensus $1.36B.John Gibson, President and Chief Executive Officer, commented, "The third fiscal quarter reflected continued growth with 8% in total revenue and double digit adjusted diluted earnings per share. Solid execution throughout our calendar year-end and selling season resulted in growth in new sales and strong retention." Gibson continued, "Small businesses have demonstrated remarkable resiliency, as they continue to contend with a constantly changing labor market, inflation, and increasing regulations and interest rates going into calendar year 2023. More than ever, businesses are seeking the assistance and support of stable trusted partners to help them navigate these issues. Paychex is well positioned with our unique blend of leading-edge technology solutions, human resources and compliance expertise and our long standing track record of being there for our customers when they need us the most." Recently the U.S. banking market has experienced increased volatility as a result of two highly publicized bank closings. We have no cash, restricted cash, or investments deposited with Silicon Valley Bank or Signature Bank and have met all client fund obligations related to employee payment services and remittances to applicable tax or regulatory agencies. We continue to monitor this situation and believe that our existing client funds held, cash, cash equivalents, and investment balances will be sufficient to meet all client fund obligations.