Paychex's key management business segment quarterly revenue missed expectations, leading to a decline in its stock price.

Reuters, September 23 - Human resources and payroll services provider Paychex (PAYX.O) announced on Wednesday that its largest business segment, management solutions, fell short of quarterly revenue expectations, resulting in the company’s share price dropping more than 7% in premarket trading.

Details are as follows:

• According to data compiled by LSEG, the business unit reported quarterly revenue of $1.21 billion, below the analysts’ average expectation of $1.23 billion.

• The human capital management market is known to be highly competitive and fragmented; Paychex faces competition not only from national, regional, and online payroll service providers, but also from in-house payroll and human resources systems at enterprises.

• The company's first-quarter revenue was $1.63 billion, in line with the expectation of $1.63 billion.

• Its adjusted earnings per share were $1.34, slightly higher than the expected $1.32.

• Paychex has launched an artificial intelligence recruiting tool named WISE Hire (link), which helps companies source and screen candidates and automate recruiting workflows.

• The company provides businesses with human resources, payroll management, employee benefits, and insurance solutions.

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