Paychex (Nasdaq: PAYX) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 29 (Q3), Paychex met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.

Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
Paychex logged revenue of $569.5 million. The 19 analysts polled by S&P Capital IQ predicted revenue of $569.1 million on the same basis. GAAP reported sales were 7.2% higher than the prior-year quarter's $531.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.37. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.37 per share. GAAP EPS of $0.37 for Q3 were 2.8% higher than the prior-year quarter's $0.36 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 68.9%, 30 basis points better than the prior-year quarter. Operating margin was 36.9%, 50 basis points worse than the prior-year quarter. Net margin was 23.8%, 80 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $558.0 million.

Next year's average estimate for revenue is $2.24 billion.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,487 members out of 1,556 rating the stock outperform, and 69 members rating it underperform. Among 529 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 519 give Paychex a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average price target is $31.47.

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