United Investment Limited - Paychex Stock Falls as Business Pressures Lower Revenue

CENTRAL, Hong Kong - Dec. 26, 2023 - PRLog -- With a year-on-year gain of 5.7%, revenue reached $1.26 billion, surpassing the forecasts of experts who had anticipated $1.27 billion. At $1.08 per share, earnings per share (EPS) were more than what was anticipated.

Compared to the previous year, total service revenue climbed by 5%, reaching $1.2 billion. The sales of Management Solutions rose by 4% to reach $930.7 million, while the sales of Professional Employer Organization and Insurance Solutions increased by 8% to reach $295.7 million.

For the most part, increased labor and insurance costs, as well as investments in technology, sales, and marketing, were the primary contributors to the rise in expenses, which totaled $751.7 million, or a 5% increase over the previous year.

The chief executive officer of the company, John Gibson, said that small and medium-sized businesses "continue to face challenges in both the cost of and access to growth capital; as well as finding quality talent in the current labor market."

The shares of Paychex fell by seven percent on Thursday. Tuesday was the day that they achieved their highest point of 2023, and despite the fact that they have suffered losses today, they are still in the positive for the year.

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