Powered by strong gains in its payroll and HR divisions, payroll and benefits outsourcing provider Paychex Inc. posted an 18 percent rise in second quarter profits, to $132 million, versus the year-ago period.
Total revenue for the second quarter increased 14 percent, to $455 million.
“Paychex registered another record quarter, and with the economy holding steady, we believe we're positioned to continue that trend in the future,” Jonathon J. Judge, Paychex president and chief executive told WebCPA in an email. “We're in a great business with recurring revenue that allows us to continually grow. Our payroll business keeps producing strong results, and our HR services side excels with our fully outsourced solution - Paychex Premier Human Resources - continuing to grow in excess of 30 percent. We are very pleased with our results."
The company’s payroll division saw revenues rise 9 percent, to $332 million. Meanwhile, revenue from its human resources services increased 24 percent, to $93 million.
Paychex projected its revenue to grow by 12 percent to 14 percent and their net income growth to rise upwards of 15 percent by the end of FY 2007.
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