Paychex Inc. updated its outlook for its 2018 fiscal year to include the impact of U.S. tax reforms and the acquisition of Lessor Group, a provider of payroll and human capital management software services.
The company stated that human resources revenue is anticipated to increase in the range of 13% to 14% while total revenue is expected to grow approximately 7%. Paychex had predicted human resources revenue to rise 12% to 14% and total revenue to increase 6%.
Net income is expected to rise approximately 13% and adjusted net income is projected to increase approximately 15%. The company previously expected net income to increase about 5% and adjusted net income to go up about 7%.
Additionally, diluted earnings per share is expected to grow in the range of 13% to 14% and adjusted diluted earnings per share is predicted to increase in the range of 15% to 16%. Previously, diluted earnings per share was expected to increase in the range of 5% to 6% and adjusted diluted earnings per share was expected to rise in the range of 7% to 8%.
Paychex also reported net income of $260.4 million, or 72 cents per share, for its fiscal third quarter ending Feb. 28, up from $202.5 million, or 56 cents per share, in the prior-year period. Adjusted net income was $227.5 million, or 63 cents per share, compared with $199.3 million, or 55 cents per share, in the year-ago quarter.