Payroll service firm Paychex released its figures for the second quarter of FY2016 this week, and the results are mixed, though some analysts said the company beat out expectations.
The company announced its financial results on Tuesday (Dec. 22), during which it reported year-over-year growth. Earnings rose by 9 percent, surpassing estimates, though its revenue figures slightly missed the mark, reports said. Payroll service revenue grew by 3.9 percent, while human resources revenue spiked 11 percent.
The company posted a 7 percent year-over-year total revenue increase, marking $722 million, though missing earlier forecasts of $724 million.
In addition to posting its earnings, Paychex announced that it completed the acquisition of Advance Partners, an acquisition made to help customize Paychex services to the temporary staffing sector, including payroll, invoicing and taxes, the company said in a separate announcement.
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“There are more than 3 million temporary staffing employees in the United States and approximately 10,000 small and mid-sized staffing businesses that support this employee population,” the company said, adding that the takeover will help to expand its customer base and source new revenue.
“The staffing outsourcing business is a growing industry that serves many small and mid-sized firms, which is a perfect fit for Paychex,” said President and CEO Martin Mucci. He added that government regulation will steer employers towards hiring temporary workers in the coming years. “Paychex is uniquely positioned to bring our regulatory expertise to staffing firms,” Mucci stated.
The companies did not disclose the financial details of the Advance Partners buyout. The final terms of the deal were signed earlier this month, reports said.