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The company has a decent earnings surprise history, with earnings surpassing the Zacks Consensus Estimate in all trailing four quarters. The average earnings surprise is 4.2%.
Expectations From PAYX in Q1
The Zacks Consensus Estimate for the top line is currently pegged at $1.28 billion, up 6.5% from the year-ago actual figure. The uptick is likely to have been due to the expected demand for advisory assistance and HR outsourcing solutions.
Revenues from management solutions are expected to rise by 4.8% on a year-over-year basis. Our estimate currently stands at $949 million. Such an increase can be correlated with increased revenues per client, additional worksite employees involved in HR solutions and the persisting demand for Human Capital Management ancillary services.
Our estimate for PEO and insurance solution revenues is currently pegged at $299.3 million, which indicates a 5.8% rise from the year-ago reported figure. This is due to the increase in the average number of worksite employees.
We expect interest on funds held for clients to increase 76.8% year over year to $31.6 million.
The consensus estimate for the bottom line in the to-be-reported quarter is pegged at $1.12 per share, which indicates 8.7% growth from the year-ago figure. The increase is likely to have been due to the expected rise in revenues and continued investments in technology.
What Our Model Says
Our proven model predicts an earnings beat for PAYX this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
PAYX has an Earnings ESP of +0.09% and a Zacks Rank #2. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other stocks from the broader Business Services sector that have performed well in their recent earnings releases:
Automatic Data (ADP - Free Report) reported better-than-expected fourth-quarter fiscal 2023 results. Adjusted earnings per share of $1.89 (excluding 1 cent from non-recurring items) beat the Zacks Consensus Estimate by 3.3% and grew 26% from the year-ago fiscal quarter’s figure. Total revenues of $4.47 billion beat the consensus estimate by 1.8% and improved 8.5% from the year-ago fiscal quarter’s reading on a reported basis and 9% on an organic constant-currency basis.
TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in international markets.
Gartner (IT - Free Report) reported better-than-expected second-quarter 2023 results. Adjusted earnings per share (excluding 37 cents from non-recurring items) of $2.85 beat the Zacks Consensus Estimate by 14.9% and matched the year-ago reported figure. Revenues of $1.5 billion beat the consensus estimate by 1% and improved 9.2% year over year on a reported basis and 10% on a foreign currency-neutral basis. The total contract value was $4.6 billion, up 8.9% year over year on a foreign currency-neutral basis.
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Paychex (PAYX) to Report Q1 Earnings: Here's What to Expect
Paychex, Inc. (PAYX - Free Report) is scheduled to release its first-quarter fiscal 2024 results on Sep 27 before market open.
The company has a decent earnings surprise history, with earnings surpassing the Zacks Consensus Estimate in all trailing four quarters. The average earnings surprise is 4.2%.
Expectations From PAYX in Q1
The Zacks Consensus Estimate for the top line is currently pegged at $1.28 billion, up 6.5% from the year-ago actual figure. The uptick is likely to have been due to the expected demand for advisory assistance and HR outsourcing solutions.
Paychex, Inc. Price and EPS Surprise
Paychex, Inc. price-eps-surprise | Paychex, Inc. Quote
Revenues from management solutions are expected to rise by 4.8% on a year-over-year basis. Our estimate currently stands at $949 million. Such an increase can be correlated with increased revenues per client, additional worksite employees involved in HR solutions and the persisting demand for Human Capital Management ancillary services.
Our estimate for PEO and insurance solution revenues is currently pegged at $299.3 million, which indicates a 5.8% rise from the year-ago reported figure. This is due to the increase in the average number of worksite employees.
We expect interest on funds held for clients to increase 76.8% year over year to $31.6 million.
The consensus estimate for the bottom line in the to-be-reported quarter is pegged at $1.12 per share, which indicates 8.7% growth from the year-ago figure. The increase is likely to have been due to the expected rise in revenues and continued investments in technology.
What Our Model Says
Our proven model predicts an earnings beat for PAYX this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
PAYX has an Earnings ESP of +0.09% and a Zacks Rank #2. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other stocks from the broader Business Services sector that have performed well in their recent earnings releases:
Automatic Data (ADP - Free Report) reported better-than-expected fourth-quarter fiscal 2023 results. Adjusted earnings per share of $1.89 (excluding 1 cent from non-recurring items) beat the Zacks Consensus Estimate by 3.3% and grew 26% from the year-ago fiscal quarter’s figure. Total revenues of $4.47 billion beat the consensus estimate by 1.8% and improved 8.5% from the year-ago fiscal quarter’s reading on a reported basis and 9% on an organic constant-currency basis.
TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in international markets.
Gartner (IT - Free Report) reported better-than-expected second-quarter 2023 results. Adjusted earnings per share (excluding 37 cents from non-recurring items) of $2.85 beat the Zacks Consensus Estimate by 14.9% and matched the year-ago reported figure. Revenues of $1.5 billion beat the consensus estimate by 1% and improved 9.2% year over year on a reported basis and 10% on a foreign currency-neutral basis. The total contract value was $4.6 billion, up 8.9% year over year on a foreign currency-neutral basis.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.