EPS Beat, Strong Margins, Paycor Deal Nears Completion And More

Shares of Paychex Inc (NASDAQ:PAYX) shares are trading higher on Wednesday after the third-quarter earnings.

The company reported third-quarter revenue growth of 5% year-on-year to $1.509 billion, marginally missing the analyst consensus estimate of $1.516 billion.

Adjusted EPS of $1.49 beat the consensus estimate of $1.48.

Management Solutions revenue increased 5% to $1.1 billion and Professional Employer Organization (PEO) and Insurance Solutions revenue gained 6% to $365.4 million.

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Total expenses increased 4% to $817.2 million due to acquisition-related costs associated with the pending Paycor acquisition, increase in PEO direct insurance costs and investment in product, technology, data, and AI.

Operating income for the quarter increased 6% to $691.8 million and the operating margin expanded 70 basis…