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Paychex's (PAYX) Q4 Earnings and Revenues Beat Estimates
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Paychex, Inc. (PAYX - Free Report) is a leading provider of comprehensive payroll and integrated human resource and employee benefits outsourcing solutions to small- and medium-sized businesses in the United States. Paychex’s payroll service continues to perform well and the company continues to see better-than-expected demand for its human resource outsourcing services.
The company’s investments in product development and focus on building its sales force to support revenue growth are encouraging. We consider that the company’s expansionary initiatives such as joint ventures and acquisitions support its long-term growth strategy.
However, increased investment in new and innovative products, sluggish macroeconomic conditions and severe competition from other players in the space has made this sector a very tough one to be in for the short term. Due to this, investors are eagerly awaiting PAYX’s earnings report in order to set the record straight and to give some guidance on where this company is heading.
PAYX have a decent history when it comes to recent earnings reports as the stock has beaten estimates thrice and meets once in the last four quarters, making for an average surprise of approximately 2.23%.
Revenue: Revenues surpassed. Paychex posted revenues of $798.6 million, compared to our consensus estimate of $798 million.
Key Stats: The company’s Human Resource Services segment witnessed strong growth mainly driven by a rise in client base and worksite employees, increased revenues from retirement and online HR administration services. Also, Paychex provided its fiscal 2018 outlook wherein it expects revenues to increase by approximately 5% while non-GAAP earnings grew in the range of 7% to 8%.
Shares of PAYX were up 0.4% in the pre-market trading.
Check back later for our full write up on this PAYX earnings report later!
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Paychex's (PAYX) Q4 Earnings and Revenues Beat Estimates
Paychex, Inc. (PAYX - Free Report) is a leading provider of comprehensive payroll and integrated human resource and employee benefits outsourcing solutions to small- and medium-sized businesses in the United States. Paychex’s payroll service continues to perform well and the company continues to see better-than-expected demand for its human resource outsourcing services.
The company’s investments in product development and focus on building its sales force to support revenue growth are encouraging. We consider that the company’s expansionary initiatives such as joint ventures and acquisitions support its long-term growth strategy.
However, increased investment in new and innovative products, sluggish macroeconomic conditions and severe competition from other players in the space has made this sector a very tough one to be in for the short term. Due to this, investors are eagerly awaiting PAYX’s earnings report in order to set the record straight and to give some guidance on where this company is heading.
PAYX have a decent history when it comes to recent earnings reports as the stock has beaten estimates thrice and meets once in the last four quarters, making for an average surprise of approximately 2.23%.
Currently, PAYX has a Zacks Rank #2 (Buy), but that could definitely change following the company’s fourth-quarter fiscal 2017 earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: PAYX Beats on earnings. The company’s reported earnings of 54 cents per share which came a penny ahead of the Zacks Consensus Estimate.
Paychex, Inc. Price and EPS Surprise
Paychex, Inc. Price and EPS Surprise | Paychex, Inc. Quote
Revenue: Revenues surpassed. Paychex posted revenues of $798.6 million, compared to our consensus estimate of $798 million.
Key Stats: The company’s Human Resource Services segment witnessed strong growth mainly driven by a rise in client base and worksite employees, increased revenues from retirement and online HR administration services. Also, Paychex provided its fiscal 2018 outlook wherein it expects revenues to increase by approximately 5% while non-GAAP earnings grew in the range of 7% to 8%.
Shares of PAYX were up 0.4% in the pre-market trading.
Check back later for our full write up on this PAYX earnings report later!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>