Paychex Inc - PAYX STOCK NEWS

The Paychex Small Business Employment Watch reported a national index level of 100.06 for small business job growth in October 2024. The jobs index averaged 100.29 through the first 10 months, showing modest growth in businesses with fewer than 50 employees. Hourly earnings growth reached 3.02%, while weekly earnings remained below 3% for nine consecutive months. The report highlighted significant impacts from hurricanes Milton and Helene, with Florida's index falling below 100 for the first time since March 2021, and Tampa experiencing a 1.81 percentage-point decrease. The Midwest led regional growth at 100.79, driven by gains in Education and Health Services.

Paychex has been recognized as a 'Leader' in NelsonHall's 2024 Vendor Evaluation and Assessment Tool (NEAT) report for payroll service providers, marking the eighth consecutive year for this acknowledgment. The recognition is specifically for Paychex Flex®, the company's cloud-based SaaS solution.

NelsonHall's evaluation criteria included the ability to deliver immediate client benefits and meet future requirements. Paychex was placed in the 'Leader' quadrant for Digital Payroll and Extended Services, reflecting its capability to fully meet both criteria.

In 2024, Paychex introduced new solutions like Paychex Flex® Perks, a digital marketplace for employee benefits including early access to earned wages, financial wellness solutions, and voluntary lifestyle benefits. This aligns with the critical need for timely employee pay and benefits, especially for small and mid-sized companies competing for talent against larger organizations.

Paychex Board of Directors has declared a regular quarterly cash dividend on Paychex common stock. The dividend amount is set at $0.98 per share. This dividend will be payable on November 27, 2024 to shareholders of record as of November 7, 2024. The announcement demonstrates Paychex's commitment to providing consistent returns to its shareholders through dividend payments.

The Paychex Small Business Employment Watch for September reveals a slight moderation in the national jobs index to 99.84, while maintaining an average of 100.31 for 2024, indicating modest employment growth. Hourly earnings growth for workers reached 3.01% in September, with the three-month annualized growth remaining below 3% for five consecutive months.

Key highlights include:

• 29 out of 50 states reported an index of 100 or higher
• The Midwest region led in small business employment growth at 100.39
• Indiana topped state rankings at 101.29
• The West region led in hourly earnings growth at 3.54%
• Education and Health Services sector led industries at 100.95

Paychex CEO John Gibson noted the impact of external factors like the upcoming election and potential rate cuts on employment growth fluctuations.

Paychex, Inc. reported solid first quarter results for fiscal 2025, with total revenue increasing 3% to $1.3 billion. Excluding the impact of the Employee Retention Tax Credit expiration and one less payroll processing day, revenue growth was 7%. Diluted earnings per share grew 2% to $1.18, while adjusted diluted earnings per share also increased 2% to $1.16.

Key highlights include:

• Management Solutions revenue up 1% to $961.7 million
• PEO and Insurance Solutions revenue increased 7% to $319.3 million
• Interest on funds held for clients grew 15% to $37.5 million
• Operating income increased 2% to $546.7 million

The company launched new digital solutions, including Paychex Flex® Engage, Paychex Flex Perks, and Paychex Recruiting Copilot, to help businesses attract and retain talent.

Paychex has introduced Paychex Recruiting Copilot, an AI-assisted recruiting tool for small and medium-sized businesses, in partnership with Findem. This solution uses 3D data and natural-language search to analyze millions of potential employees, quickly producing a list of qualified candidates based on specific hiring requirements.

Key features include:

• Instant access to qualified talent
• Creation of active talent pools
• Elimination of traditional job posting and resume review processes

The tool enhances Paychex Flex®, the company's cloud-based HCM SaaS solution, bringing advanced recruiting capabilities typically available only to large enterprises to smaller businesses. This innovation addresses the challenge of finding qualified candidates, reported by 80% of Paychex customers in a recent study.

Paychex, Inc. (Nasdaq: PAYX) has announced its upcoming fiscal 2025 first quarter earnings release and conference call. The company will disclose its financial results for the quarter ended August 31, 2024, via Business Wire before market open on Tuesday, October 1, 2024. A conference call to discuss the results is scheduled for 9:30 a.m. ET on the same day, featuring John Gibson, president and CEO, and Bob Schrader, senior vice president and CFO.

The call will be accessible as a live broadcast on the Paychex Investor Relations portal. An on-demand webcast will be available for replay for approximately 90 days after the live call.

The Paychex Small Business Employment Watch for August 2024 reveals a cooling labor market for U.S. small businesses with fewer than 50 employees. Hourly earnings growth dropped to 2.89%, falling below 3% for the first time since January 2021. The national small business jobs index averaged 100.37 through eight months of 2024, indicating modest employment growth. Despite a slight increase to 99.89 in August, the index remained below 100, suggesting nominal year-over-year job losses.

Regional highlights include the Midwest leading in small business employment growth at 100.50, with Indiana topping both state and national rankings at 101.87. The West led in hourly earnings growth at 3.55%, while the Construction sector outperformed in hourly earnings (3.66%), weekly earnings (3.81%), and weekly hours worked (0.27%).

Paychex, Inc. has been awarded the 'Top HR Product of the Year' for Paychex Flex Perks, a curated digital marketplace for employee benefits. This marks the fourth time a Paychex solution has received this recognition. The award, given by Human Resource Executive Magazine, highlights new HR technology innovations that impact the market.

Paychex Flex Perks is integrated into the company's cloud-based SaaS solution, Paychex Flex. It offers a range of benefits including early access to earned wages, financial wellness solutions, and voluntary lifestyle benefits. The platform is designed to address the needs of today's diverse, five-generational workforce and allows employees to self-select additional benefits based on their personal needs.

This solution is particularly beneficial for small and medium-sized businesses, enabling them to compete with larger organizations in attracting top talent. Paychex Flex Perks services are paid through employee payroll deduction at no cost to the employer.