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Paychex (PAXY) to Report Q4 Earnings: What's in the Cards?

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Paychex, Inc. (PAYX - Free Report) is scheduled to report fourth-quarter fiscal 2020 results on Jul 7, before market open.

So far this year, shares of Paychex have declined 10.3% compared with 12.5% decline of the industry it belongs to and 3.8% decrease of the Zacks S&P 500 composite.

 

Let's check out how things have shaped up for the announcement.

Q4 Expectations

Paychex’s fourth-quarter fiscal 2020 performance is expected to have been affected by coronavirus-led lockdowns prompting firms to "reshore" jobs amid lack of labor, supply-chain disruptions and workplace closures.

The Zacks Consensus Estimate for the company’s to-be-reported quarter’s revenues stands at $911.68 million, indicating a decrease of 7% from the year-ago reported figure. The consensus mark for total service revenues stands at $886 million, indicating decline of 7.5% from the year-ago reported number. The consensus estimate for interest on funds held by clients’ revenues is pegged at $24.82 million, indicating 11.8% year-over-year growth.

The consensus mark for earnings is pegged at 61 cents per share, indicating decline of 3.2% from the year-ago quarter reported figure.

Notably, Paychex’s revenues and earnings increased 7% and 9%, respectively, year over year in the fiscal third quarter

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Paychex this season. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Paychex, Inc. Price and EPS Surprise

 

Paychex, Inc. Price and EPS Surprise

Paychex, Inc. price-eps-surprise | Paychex, Inc. Quote

Stocks to Consider

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

FactSet Research Systems Inc. (FDS - Free Report) has an Earnings ESP of +1.11% and a Zacks Rank #1.

SailPoint Technologies Holdings, Inc. (SAIL - Free Report) has an Earnings ESP of +100% and a Zacks Rank #2.

CoreLogic (CLGX - Free Report) has an Earnings ESP of +12.25% and a Zacks Rank #2.

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