Paychex Inc - PAYX STOCK NEWS

Paychex, Inc. (NASDAQ: PAYX) has declared a quarterly dividend of $.66 per share, payable on November 29, 2021 to shareholders of record as of November 1, 2021. With over 710,000 payroll clients, Paychex offers integrated human capital management solutions that empower small and medium-sized businesses. The company has 50 years of industry experience and supports one in every 12 American private sector employees, underscoring its significant role in the payroll sector.

Paychex, based in Rochester, N.Y., has announced the acquisition of Flock, a San Francisco-based provider of benefits enrollment and HRIS solutions. This acquisition aims to enhance Paychex's offerings in human capital management and benefits administration, positioning the company for growth in a competitive market. Flock's platform, aligned with Paychex's services, is expected to drive innovation and efficiency. Importantly, Flock will maintain its operations without disruptions, and all employees will transition to Paychex. Financial terms of the deal were not disclosed.

According to the Paychex | IHS Markit Small Business Employment Watch report for September, the Small Business Jobs Index reached 99.95, marking a 5.84% increase over the past year. Although job growth improved in summer, it slowed to 0.15% in September. Hourly earnings grew by 3.68%, the fourth consecutive increase, reaching $29.68. The leisure and hospitality sector leads in wage growth with an 8.14% increase. Texas has become the top state in job growth with an index of 102.90, surpassing Arizona.

Paychex reported strong first-quarter results for fiscal 2022, with total revenue reaching $1.08 billion, a 16% year-over-year increase. Operating income surged 56% to $442.9 million, and diluted earnings per share rose 56% to $0.92. The company experienced double-digit growth in both revenue and earnings, driven by robust sales in digital and HR outsourcing solutions. Client retention remained high, attributed to the resilience of small businesses. Paychex's future outlook anticipates approximately 8% growth in management solutions revenue and adjusted diluted earnings per share is projected to grow between 12% and 14%.

Paychex announced its Fall '21 product enhancements to aid employers in hiring and retaining talent amid competitive conditions. Key features include Paychex Pre-Check for payroll accuracy, Talent Management tools for employee retention, and integration with Amazon Alexa. The developments aim to improve efficiency, address HR data accessibility needs, and adapt to the evolving employment landscape influenced by COVID-19. The company continues to focus on automation and efficiency, anticipating increased demand for its HR technology.

New research by Paychex reveals concerning trends about employee loyalty among younger workers. The study shows that 35% of Millennials and 44% of Gen Z employees are actively seeking new job opportunities, significantly higher than only 11% of Baby Boomers and 27% of Gen X. Key drivers for retention include pay increases (61%), stay bonuses (39%), and flexible working hours (35%). Employees in hybrid work arrangements are at greater risk of leaving compared to those in fully remote settings, highlighting the need for employers to adapt to changing worker priorities.

Paychex, Inc. (Nasdaq:PAYX) will announce its fiscal 2022 first-quarter financial results on September 30, 2021, before market opening. The subsequent conference call is scheduled for 9:30 a.m. ET, featuring insights from CEO Martin Mucci and CFO Efrain Rivera. Investors can access the live broadcast and archived webcast via the Paychex Investor Relations portal. As of May 31, 2021, Paychex serves over 710,000 payroll clients across the U.S. and Europe.