Paychex Earnings: Solid HRS Performance Drives Revenue

Driven by strong growth in its Human Resource Services segment, the company reported 8% year-on-year growth in service revenue, tracking the lower end of its guidance of 8-10% growth for the fiscal year, to reach $693.6 million. Rising demand for healthcare reform products and HR outsourcing led to double-digit growth in the HRS segment. The Payroll segment was sluggish as a result of a shift in the timing of revenues.