Paychex (PAYX) – Get Report said Tuesday first-quarter results took a hit from the coronavirus pandemic but the payroll benefits manager still beat Wall Street’s expectations
Shares of the Rochester, New York-based company were falling 2.4% to $79.57.
Paychex reported net income of $211.6 million, or 59 cents a share, down from $264.2 million, or 73 cents a share, a year ago. Adjusted earnings came to 63 cents, beating FactSet’s consensus forecast of 55 cents.
Revenue slipped 6% to $932.2 million, ahead of FactSet’s call for $895.4 million.
Service revenue came to $917.3 million, beating expectations of $881.3 million.
The company said adjusted net income includes adjustments for one-time costs of $31.2 million related to the acceleration of cost-saving initiatives, “including the long-term strategy to reduce our geographic footprint and headcount optimization, and net tax windfall benefits related to employee stock-based compensation payments.”
Looking ahead to fiscal 2021,