Economic Indicators

Paychex’s quarterly revenue growth slows on weak client spending

2023.12.21 14:35


© Reuters. People walk near the Rockefeller Center Christmas Tree at Rockefeller Center in the Midtown area of New York City, U.S., November 30, 2023. REUTERS/Shannon Stapleton/File Photo

(Reuters) – Payroll services provider Paychex (NASDAQ:) reported its slowest rise in quarterly revenue in over two years on Thursday, hurt by tepid spending by businesses and a slower pace of hiring, sending its stock down 6%.

Shares of the Rochester, New York-based company fell to $120 in early trading.

The number of Americans filing new claims for unemployment benefits increased moderately last week, according to a report from the U.S. Labor Department, suggesting weak demand in the labor market.

An uncertain macroeconomic environment has also dampened demand for Paychex’s HR platform among small and medium businesses.

Small and mid-sized businesses continue to struggle “in both the cost of and access to growth capital; and finding quality talent in the current labor market,” said CEO John Gibson.

The company’s results contrast with those of peers like Workday (NASDAQ:), which raised its annual subscription revenue forecast in November. Payrolls processor Automatic Data Processing (NASDAQ:) also reported upbeat results.

Paychex’s revenue in the second quarter ended Nov. 30 rose 6%, to $1.26 billion, according to LSEG data.

Net income rose to $392.7 million, or $1.08 per share, in the second quarter, from $360.3 million, or 99 cents per share, a year earlier.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 70,250.82 3.69%
ethereum
Ethereum (ETH) $ 2,455.08 1.09%
tether
Tether (USDT) $ 1.00 0.00%
bnb
BNB (BNB) $ 569.07 2.87%
solana
Solana (SOL) $ 167.13 4.72%
usd-coin
USDC (USDC) $ 1.00 0.04%
xrp
XRP (XRP) $ 0.514116 0.94%
dogecoin
Dogecoin (DOGE) $ 0.176453 12.27%
staked-ether
Lido Staked Ether (STETH) $ 2,453.10 1.00%
tron
TRON (TRX) $ 0.161044 1.61%
cardano
Cardano (ADA) $ 0.336751 2.72%
the-open-network
Toncoin (TON) $ 4.71 1.74%
shiba-inu
Shiba Inu (SHIB) $ 0.000018 7.93%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,909.56 1.24%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 70,135.79 3.70%
avalanche-2
Avalanche (AVAX) $ 24.25 5.54%
weth
WETH (WETH) $ 2,454.17 1.04%
chainlink
Chainlink (LINK) $ 10.90 5.46%
bitcoin-cash
Bitcoin Cash (BCH) $ 342.15 2.59%
sui
Sui (SUI) $ 2.02 8.54%
usds
USDS (USDS) $ 1.00 0.08%
polkadot
Polkadot (DOT) $ 3.90 3.32%
leo-token
LEO Token (LEO) $ 6.05 0.11%
litecoin
Litecoin (LTC) $ 66.47 0.58%
near
NEAR Protocol (NEAR) $ 3.84 5.99%
aptos
Aptos (APT) $ 8.54 5.41%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,581.43 1.10%
uniswap
Uniswap (UNI) $ 7.16 5.01%
pepe
Pepe (PEPE) $ 0.000009 6.51%
internet-computer
Internet Computer (ICP) $ 7.40 4.49%
bittensor
Bittensor (TAO) $ 465.14 10.86%
dai
Dai (DAI) $ 1.00 0.04%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.25 10.63%
monero
Monero (XMR) $ 158.77 1.02%
kaspa
Kaspa (KAS) $ 0.112204 7.49%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.04%
stellar
Stellar (XLM) $ 0.093484 2.57%
whitebit
WhiteBIT Coin (WBT) $ 19.08 1.30%
ethereum-classic
Ethereum Classic (ETC) $ 18.23 2.48%
first-digital-usd
First Digital USD (FDUSD) $ 0.998629 0.12%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.304295 3.74%
blockstack
Stacks (STX) $ 1.54 5.06%
okb
OKB (OKB) $ 38.12 1.80%
dogwifcoin
dogwifhat (WIF) $ 2.13 6.69%
filecoin
Filecoin (FIL) $ 3.40 2.16%
aave
Aave (AAVE) $ 134.60 4.47%
crypto-com-chain
Cronos (CRO) $ 0.072681 2.59%
arbitrum
Arbitrum (ARB) $ 0.492096 3.03%
mantle
Mantle (MNT) $ 0.565804 2.03%
immutable-x
Immutable (IMX) $ 1.10 2.95%