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Paychex (PAYX) Set to Report Q3 Earnings: What's in Store?

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Paychex, Inc. (PAYX - Free Report) is scheduled to report third-quarter fiscal 2021 results on Apr 6, before market open.

Let's check out the expectations in detail.

Q3 Expectations

The Zacks Consensus Estimate for the company’s to-be-reported quarter’s revenues stands at $1.11 billion, indicating a decrease of 3.2% from the year-ago reported figure.

The consensus mark for Management Solutions revenues stands at $833 million, indicating a decline of 2% from the year-ago reported number. Decline in check volumes (backed by reduction in the number of clients processing payrolls and the number of employees paid) is likely to have weighed on the top line.

The consensus mark for Professional employer organization and Insurance Solutions revenues stands at $256 million, indicating a decline of 5.9% from the year-ago reported number. Decline in the number of clients’ worksite employees is likely to have weighed on the top line.

The consensus estimate for interest on funds held by clients’ revenues is pegged at $16.11 million, indicating 24% year-over-year decline. Lower average investment balances, average interest rates and realized gains are likely to have weighed on segmental revenues.

The consensus mark for earnings is pegged at 93 cents per share, indicating decline of 4.1% from the year-ago quarter’s reported figure.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Paychex this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Paychex has an Earnings ESP of 0.00% and a Zacks Rank #3.

Paychex, Inc. Price and Consensus

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming release.

S&P Global (SPGI - Free Report) has an Earnings ESP of +0.23% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Waste Management (WM - Free Report) has an Earnings ESP of +10.23% and a Zacks Rank #3.

Fiserv (FISV - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank #3.

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