Paychex Inc - PAYX STOCK NEWS

On May 31, 2022, Paychex and IHS Markit reported that small business workers in the U.S. experienced a 12th consecutive month of rising hourly earnings, averaging $30.31, a 5.19% increase from last year. However, the Small Business Jobs Index declined 0.27% from April, marking the largest one-month decrease in over two years, now at 100.87. The report indicates that despite inflation and a tight labor market, small business job growth remains resilient, with regions like the South and sectors including leisure and hospitality showing notable growth.

According to the latest Paychex | IHS Markit Small Business Employment Watch, hourly earnings growth for U.S. small business workers has increased for eleven consecutive months, with average earnings reaching $30.10, a 4.85% year-over-year rise. The national jobs index stands at 101.14, marking a 2.85% increase from last year, although job growth moderated slightly at -0.14%. Texas leads in employment growth, while the leisure and hospitality sector experiences the most robust job and wage growth. The report reflects ongoing strength in small business employment despite a slight slowdown in job gains.

Paychex, Inc. (Nasdaq: PAYX) announced a 20% increase in its quarterly dividend, raising it from $0.66 to $0.79 per share. This boost reflects the company’s strong financial performance and commitment to returning cash to shareholders. The new dividend will be paid on May 26, 2022, to shareholders on record as of May 12, 2022. For Fiscal 2022, Paychex plans to return $1 billion in dividends, showcasing its financial strength and effective capital allocation strategy.

Paychex has been recognized for the ninth time by the Business Group on Health with the Best Employers: Excellence in Health & Well-being Award. This honor reflects Paychex's commitment to enhancing employee well-being for its 15,000 staff through innovative benefits, particularly during the COVID-19 pandemic. The award highlights the company's efforts in mental health, financial security, and overall job satisfaction. Paychex offers comprehensive benefits, including employee assistance programs and wellness initiatives aimed at building resilience.

Research from Paychex reveals the negative effects of unpredictable work schedules on both full-time and part-time employees, exacerbated by the COVID-19 pandemic. Key findings include that 30% of respondents reported having unpredictable schedules, impacting their personal commitments (44%), mental health (24%), and financial stability (30%). Part-time workers are more affected, with 34% experiencing financial distress. The study indicates that younger generations face greater burnout and prioritize personal development less due to these irregular schedules.

Paychex reported a strong financial performance for the third quarter ended February 28, 2022, with total revenue increasing by 15% year-over-year to $1.276 billion. Diluted earnings per share rose 23% to $1.19, driven by significant growth in Management Solutions and PEO and Insurance Solutions revenues. The company also adjusted its full-year guidance upward, projecting total revenue growth in the range of 12% to 13%.

Financial highlights included an operating income growth of 20% to $562.8 million and a strong cash position with $1.4 billion in cash and investments.

Paychex reported continued growth in hourly earnings for U.S. small businesses, marking the tenth consecutive month of increases. In March, hourly earnings rose by 4.76% year-over-year, while the national jobs index experienced a slight moderation of 0.03%, standing at 101.29. Job growth remains near one of its highest levels historically, increasing 7.47% over the past year. The report highlights the West as the leading region for job growth, with North Carolina generating the highest state index.

Paychex, a leader in integrated human capital management software, announced enhanced solutions aimed at improving talent retention and secure document management. Released on March 28, 2022, these updates focus on supporting businesses as they recover from the impacts of the COVID-19 pandemic. Key features include a Compensation Summary Report, Secure Document Management capabilities, and an integration for Financial Wellness. The company aims to address the challenges of a worker shortage and evolving employee needs through these innovative solutions.