Portfolio Management
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
Earnings
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
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.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| 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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