Paychex (PAYX), a leading US provider of payroll, human resources, insurance, and benefits outsourcing solutions for small- to medium-sized businesses, issued decent financials for its fiscal 2017 third quarter ended Feb 28. Total services revenues increased 5.7% y-o-y to $782.6 mn but and came in somewhat below consensus estimate. Payroll Service segment revenues went up 1.6% to $446.6 mn, primarily on the back of higher revenue per check and client base. However, the increase was tempered by approximately 1% due to one lesser processing day compared with the year-ago quarter. Human Resource Services revenues jumped 11.6% to $336 mn mainly driven by solid growth in client base and worksite employees, increased revenues from retirement and online HR administration services. Operating income increased 9.5% to $306.6 mn, and operating margin expanded 130 basis points to 38.5%. Adjusted earnings per share rose 10% to 55 cents surpassing analysts’ average projection by a penny.Paychex financial position remained strong, with cash and corporate investments balance of $403.9 mn and no long-term debt at the quarter-end. In the first 9 months of fiscal 2017, the company generated operating cash flow of $769.3 mn and paid $496.9 mn as dividends, with a quarterly dividend of 46 cents per share offering a healthy annualized dividend yield of 3.1%. Besides, the company repurchased 2.9 mn shares for $166.2 mn.Paychex reiterated its full fiscal year 2017 guidance and expects total service revenues to increase 7-8% y-o-y. Payroll Service revenues growth is forecast in the range of 3-4%, while Human Resource Services revenues are anticipated to rise 12-14%. Net income is likely to grow 8% on a non-GAAP basis. I believe that Paychex’s focus on new products launches and expansionary initiatives, such as joint ventures and acquisitions, will continue to support the company’s long-term growth strategy. Shares of Paychex are trading near $59 support level. I expect the stock to rebound, with medium-term target at $65. $PAYX, Paychex, Inc. / D