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Seeking Clues to Paychex (PAYX) Q1 Earnings? A Peek Into Wall Street Projections for Key Metrics

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Wall Street analysts forecast that Paychex (PAYX - Free Report) will report quarterly earnings of $1.21 per share in its upcoming release, pointing to a year-over-year increase of 4.3%. It is anticipated that revenues will amount to $1.54 billion, exhibiting an increase of 16.5% compared to the year-ago quarter.

The consensus EPS estimate for the quarter has undergone an upward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Paychex metrics that are commonly monitored and projected by Wall Street analysts.

Analysts expect 'Revenue- Management Solutions' to come in at $1.17 billion. The estimate indicates a year-over-year change of +21.4%.

The collective assessment of analysts points to an estimated 'Revenue- Interest on funds held for clients' of $43.75 million. The estimate indicates a change of +16.7% from the prior-year quarter.

Analysts' assessment points toward 'Revenue- Total service revenue' reaching $1.50 billion. The estimate suggests a change of +17.1% year over year.

The average prediction of analysts places 'Revenue- PEO and Insurance Services' at $333.29 million. The estimate points to a change of +4.4% from the year-ago quarter.

Based on the collective assessment of analysts, 'Average investment Balance - Funds held for clients' should arrive at $4.88 billion. Compared to the present estimate, the company reported $4.29 billion in the same quarter last year.

The combined assessment of analysts suggests that 'Average interest rates earned (exclusive of net realized gains) - Funds held for clients' will likely reach 3.5%. The estimate is in contrast to the year-ago figure of 3.5%.

The consensus among analysts is that 'Average investment Balance - Corporate cash equivalents and investments' will reach $1.68 billion. Compared to the current estimate, the company reported $1.62 billion in the same quarter of the previous year.

Analysts forecast 'Average interest rates earned (exclusive of net realized gains) - Corporate cash equivalents and investments' to reach 4.2%. The estimate compares to the year-ago value of 4.9%.

View all Key Company Metrics for Paychex here>>>

Paychex shares have witnessed a change of -7.5% in the past month, in contrast to the Zacks S&P 500 composite's +2.7% move. With a Zacks Rank #4 (Sell), PAYX is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .


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