Paychex misses quarterly revenue estimates in key management segment, shares fall
Paychex misses quarterly revenue estimates in key management segment, shares fall Sept 23 (Reuters) - HR and payroll services provider Paychex PAYX.O on Wednesday missed first-quarter revenue estimates at its largest segment, management solutions, sending its shares down more than 7% in premarket trading.
Here are more details:
The segment reported quarterly revenue of $1.21 billion, falling short of analysts' average estimate of $1.23 billion, according to data compiled by LSEG.
The human capital management market is known to be highly competitive and fragmented, with Paychex competing against national, regional and online payroll providers as well as in-house payroll and HR systems.
The company posted first-quarter revenue of $1.63 billion, in line with estimates of $1.63 billion.
Its adjusted profit came in at $1.34 per share, slightly above expectations of $1.32.
Paychex has launched an AI-powered recruiting tool called WISE Hire, which helps businesses source and screen candidates as well as automate recruiting workflows.
The company provides human resources, payroll, employee benefits and insurance solutions to businesses.
(Reporting by Anzar Mehraj in Bengaluru; Editing by Shreya Biswas)