Before Wednesday’s opening bell, Paychex (PAYX) released its third quarter financial results. Here’s what the results mean for mutual fund investors.
Inside PAYX's Results
The company reported net income of $169.4 million, or 46 cents per share, compared to $160.1 million, or 44 cents, a year ago. On average, analysts expected to see EPS of 46 cents.
Revenue rose to $704.3 million from $650.4 million. Analysts expected to see revenue of $701.16 million.
Human Resources Revenue Soars
Last year, Paychex launched a minimum premium plan, which resulted in a jump in human resources revenues. During the third quarter, PAYX reported a 19% surge in human resources revenue.
In the last year, shares of PAYX gained over 17%, compared to a 14% gain in the S&P 500. The stock also offers a 3.05% dividend yield, which is ideal for income-focused investors.
Mutual Funds to Watch
The mutual funds below may be a good option for investors seeking exposure to PAYX. The three funds listed currently hold the largest stakes in the company.
|VTSMX||Vanguard Total Stock Mkt Idx||1.57%|
|VFINX||Vanguard 500 Index||1.00%|
|FNKLX||Fidelity Series Equity-Income||0.72%|
The Bottom Line
The funds listed above allow investors to gain exposure to a wide range of holdings. Investors interested in Paychex may also be interested in Trinet (TNET).
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