Paychex Inc - PAYX STOCK NEWS

According to the latest report from Paychex, small business employment is on the rise as 2021 concludes. Hourly earnings growth reached a record 4.27%, the highest since reporting began, resulting in an average hourly wage of $30.00. The Small Business Jobs Index improved by 7.31% year-over-year, despite a slight monthly slowdown. Notably, the leisure and hospitality sectors saw double-digit growth of 10.69%. The West region led in job growth, while Dallas remained the top metro area for small business hiring.

Paychex reported strong financial results for Q2 FY2022, with total service revenue reaching $1.094 billion, a 13% increase year-over-year, and total revenue at $1.109 billion, also up 13%. Operating income rose 24% to $440.3 million, while diluted earnings per share (EPS) increased 21% to $0.91. The company anticipates revenue growth of 10% to 11% for Management Solutions and 10% to 12% for PEO and Insurance Solutions for FY2022, with adjusted EPS expected to grow 18% to 20%.

Paychex, Inc. (Nasdaq: PAYX) will release its fiscal 2022 second-quarter financial results on December 22, 2021, before market opening. The company will hold a conference call at 9:30 a.m. ET the same day, featuring CEO Martin Mucci and CFO Efrain Rivera. Paychex, a leading provider of integrated human capital management solutions, serves over 710,000 payroll clients as of May 31, 2021, contributing to its position as a key player in the market.

In November, small business hourly earnings in the U.S. rose 4.07%, marking the highest growth since tracking began a decade ago, according to Paychex's latest report. Small business hiring also increased, with the Jobs Index climbing 0.27% to 100.72. The report highlighted that labor demand is driving wage hikes, with overall wage growth averaging 4.43% in recent months. The South led regional growth, with Texas maintaining its position as the top state for employment growth. However, while the national index showed gains, the rate of growth has begun to slow.

The Paychex Board of Directors has announced Martin Mucci will assume the role of Chairman of the Board on December 1, 2021, while continuing as CEO. He succeeds founder B. Thomas Golisano, who will remain a director. Under Mucci's leadership since 2010, revenues grew from $2 billion to over $4 billion, and market capitalization increased from $10 billion to over $42 billion. Additionally, John B. Gibson, Jr. has been promoted to President and COO, effective the same date. He has significantly improved Paychex's service organization since joining the company in 2013.

On November 16, 2021, NelsonHall recognized Paychex as a "Leader" in its annual NEAT vendor evaluation report for human capital management (HCM). The report assessed 13 HCM vendors based on their ability to deliver immediate client benefits and meet future requirements. Paychex's Paychex Flex technology was noted for its digital focus and robust offerings, including new features to support small and mid-sized businesses. Through dedicated service and innovative solutions, Paychex has helped clients secure $65B in PPP loans and $6B in tax credits during the pandemic.

In October 2021, the Paychex | IHS Markit Small Business Employment Watch reported a significant increase in national job growth, marking the fifth consecutive month of gains. The Small Business Jobs Index rose to 100.45, a 0.50% increase from September and up 6.50% year-over-year. Hourly earnings growth reached a record 3.85%, reflecting labor market pressures. The report highlights regional employment growth, particularly in the West, and strong performance in the leisure and hospitality sectors. Overall, these trends indicate a positive recovery trajectory for small businesses.