Paychex misses quarterly revenue estimates in key management segment, shares fall

Sept 23 (Reuters) - HR and payroll services provider Paychex PAYX.O on Wednesday missed first-quarter revenue estimates at its largest segment, management solutions, sending its shares down more than 7% in premarket trading.

Here are more details:

• The segment reported quarterly revenue of $1.21 billion, falling short of analysts' average estimate of $1.23 billion, according to data compiled by LSEG.

• The human capital management market is known to be highly competitive and fragmented, with Paychex competing against national, regional and online payroll providers as well as in-house payroll and HR systems.

• The company posted first-quarter revenue of $1.63 billion, in line with estimates of $1.63 billion.

• Its adjusted profit came in at $1.34 per share, slightly above expectations of $1.32.

• Paychex has launched an AI-powered recruiting tool called WISE Hire, which helps businesses source and screen candidates as well as automate recruiting workflows.

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