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Compared to Estimates, Paychex (PAYX) Q4 Earnings: A Look at Key Metrics
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Paychex (PAYX - Free Report) reported $1.23 billion in revenue for the quarter ended May 2023, representing a year-over-year increase of 7.5%. EPS of $0.97 for the same period compares to $0.81 a year ago.
The reported revenue represents a surprise of +0.95% over the Zacks Consensus Estimate of $1.22 billion. With the consensus EPS estimate being $0.98, the EPS surprise was -1.02%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Paychex performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Management Solutions: $905.20 million versus $896.65 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +7.1% change.
Revenue- Interest on funds held for clients: $24.90 million versus $30.69 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +69.4% change.
Revenue- Total service revenue: $1.20 billion versus $1.19 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +6.7% change.
Revenue- PEO and Insurance Services: $299.50 million versus the seven-analyst average estimate of $294.73 million. The reported number represents a year-over-year change of +5.4%.
Shares of Paychex have returned +5.5% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Compared to Estimates, Paychex (PAYX) Q4 Earnings: A Look at Key Metrics
Paychex (PAYX - Free Report) reported $1.23 billion in revenue for the quarter ended May 2023, representing a year-over-year increase of 7.5%. EPS of $0.97 for the same period compares to $0.81 a year ago.
The reported revenue represents a surprise of +0.95% over the Zacks Consensus Estimate of $1.22 billion. With the consensus EPS estimate being $0.98, the EPS surprise was -1.02%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Paychex performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenue- Management Solutions: $905.20 million versus $896.65 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +7.1% change.
- Revenue- Interest on funds held for clients: $24.90 million versus $30.69 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +69.4% change.
- Revenue- Total service revenue: $1.20 billion versus $1.19 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +6.7% change.
- Revenue- PEO and Insurance Services: $299.50 million versus the seven-analyst average estimate of $294.73 million. The reported number represents a year-over-year change of +5.4%.
View all Key Company Metrics for Paychex here>>>Shares of Paychex have returned +5.5% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.