Written by StockNews.com

Paychex, Inc. (Nasdaq: PAYX) early Wednesday [Mar 29, 2017 @ 8:38am ] posted mixed fiscal third quarter earnings results and reaffirmed its full-year outlook, as its human resources segment continues to outpace its payrolls unit.

The Rochester, NY-based payroll and HR solutions giant reported adjusted Q3 earnings per share (EPS) of $0.55, which was $0.01 better than the Wall Street consensus estimate of $0.54.

Revenues rose 5.7% from last year to $795.8 million, missing analysts’ view for $799.08 million, however.

The company noted that its Payroll service revenue gained 2% in the latest period to $446.6 million, while Human Resource Services (HRS) revenue jumped 12% to $336.0 million.

Looking ahead, PAYX reiterated its previously announced full-year guidance of Payroll service revenue growth in the 3% to 4% range, and HRS revenue gains of 12% to 14%. Paychex also sees net income rising 7%, and adjusted net income is anticipated gaining 8% in 2017.

The company commented on its latest results via press release:

“During the third quarter, we continued to experience solid growth across our human capital management (“HCM”) product lines. One particular area was our time and attendance services, which reflected double-digit growth.

During the third quarter, we celebrated the one-year anniversary of our acquisition of Advance Partners. We are pleased with the contribution this acquisition has made to Paychex and with the future opportunities in store for this business.”

...Year-to-date, PAYX has declined -0.04%, versus a 5.17% rise in the benchmark S&P 500 index during the same period.

PAYX currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #2 of 62 stocks in the Outsourcing – Business Services category.