Paychex (NASDAQ:PAYX) earnings for the fourth quarter of fiscal 2020 have PAYX stock falling on Tuesday morning. This is despite reporting revenue of $915.1 million, which is better than Wall Street’s estimate of $910.91 million. The company also reported adjusted earnings per share (EPS) of 61 cents, while analysts were expecting EPS of 60 cents for the quarter.
The company also reported GAAP EPS of 62 cents for the period.
Here is what else is worth mentioning from the most recent Paychex earnings report.
- Adjusted EPS was down 3% from 63 cents during Q4 2019.
- Revenue for the quarter comes in 7% lower compared to $980.4 million during the same time last year.
- Operating income of $299.6 million is 5% worse year-over-year than $314.5 million
- Paychex earnings also includes a net income of $220.7 million.
- That is 4% lower than $230.4 million from the fourth quarter of 2019.
Martin Mucci, president and chief executive officer of Paychex, said this about the PAYX stock earnings:
“Fiscal 2020 was on track to be a solid year, reflecting growth across our business. As we began the fourth quarter, COVID-19 caused worldwide business shutdowns directly affecting small and medium-sized businesses, which impacted our business sales and financial performance. Since the end of April, we have seen sequential improvement in our key business metrics across our lines of business. Our performance during the COVID-19 pandemic has shown that we are truly a trusted business partner for our clients.”
The company includes a bit of guidance for fiscal 2021. Paychex is calling for EPS to decline between 6% to 10%, and revenue to decrease between 2% to 5%. Meanwhile, Wall Street is expecting EPS of $2.78 cents on revenue of $3.9 billion for the period.
PAYX stock was down 2.1% as of Tuesday morning.
Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.