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Paychex (PAYX) Q4 Earnings Beat on Segmental Performance
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Paychex, Inc. (PAYX - Free Report) delivered strong results in the fourth quarter of fiscal 2024, backed by an increase in product penetration, a rise in Professional Employer Organization (PEO) insurance revenues and higher average interest rates.
The earnings beat, however, failed to impress the market as there has not been any major price change since the earnings releaseon Jun 26.
PAYX’s earnings per share (EPS) of $1.1 surpassed the Zacks Consensus Estimate by 1.8%. The metric increased 15.5% on a year-over-year basis. Total revenues of $1.3 billion missed the consensus estimate marginally but gained 5.3% year over year.
Management Solutions segment’s revenues were $930.3 million, which gained 3% year over year. This compares favorably with our estimate of $930.2 million, indicating 2.8% growth from the year-ago quarter. The rise in this segment’s revenues was driven by an uptick in the number of clients served across HCM solutions and increased penetration of products.
PEO and Insurance Solutions segment’s revenues were $326.6 million, which increased 9% from the year-ago quarter. This, however, compares unfavorably with our anticipation of $327.7 million, indicating 9.4% growth year over year. Higher average worksite employees and a rise in PEO insurance revenues resulted in this segment’s revenue growth.
Interest on funds revenues amounted to $38.2 million, which rose 54% on a year-over-year basis. This compares unfavorably with our estimation of revenues of $41.5 million, implying 66.8% year-over-year growth. Higher average interest rates and invested balances, and lower losses realized on investment sales in portfolio repositioning drove revenues in this segment.
Fiserv, Inc. (FI - Free Report) reported mixed first-quarter 2024 results, wherein earnings outpaced the Zacks Consensus Estimate, while revenues missed the same.
FI’s adjusted EPS of $1.9 surpassed the consensus estimate by 6.2%. The metric gained 19% year over year.
Adjusted revenues of $4.5 billion missed the consensus estimate marginally. The top line decreased slightly on a year-over-year basis.
CRA International Inc. (CRAI - Free Report) reported impressive first-quarter 2024 results, which surpassed the Zacks Consensus Estimate for both earnings and revenues.
CRAI reported an adjusted EPS of $1.96, which beat the Zacks Consensus Estimate by 41% and increased 51.9% year over year.
Revenues amounted to $171.8 million which beat the consensus mark by 6.9% and gained 12.4% from the year-ago quarter.
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Paychex (PAYX) Q4 Earnings Beat on Segmental Performance
Paychex, Inc. (PAYX - Free Report) delivered strong results in the fourth quarter of fiscal 2024, backed by an increase in product penetration, a rise in Professional Employer Organization (PEO) insurance revenues and higher average interest rates.
The earnings beat, however, failed to impress the market as there has not been any major price change since the earnings releaseon Jun 26.
PAYX’s earnings per share (EPS) of $1.1 surpassed the Zacks Consensus Estimate by 1.8%. The metric increased 15.5% on a year-over-year basis. Total revenues of $1.3 billion missed the consensus estimate marginally but gained 5.3% year over year.
Management Solutions segment’s revenues were $930.3 million, which gained 3% year over year. This compares favorably with our estimate of $930.2 million, indicating 2.8% growth from the year-ago quarter. The rise in this segment’s revenues was driven by an uptick in the number of clients served across HCM solutions and increased penetration of products.
PEO and Insurance Solutions segment’s revenues were $326.6 million, which increased 9% from the year-ago quarter. This, however, compares unfavorably with our anticipation of $327.7 million, indicating 9.4% growth year over year. Higher average worksite employees and a rise in PEO insurance revenues resulted in this segment’s revenue growth.
Interest on funds revenues amounted to $38.2 million, which rose 54% on a year-over-year basis. This compares unfavorably with our estimation of revenues of $41.5 million, implying 66.8% year-over-year growth. Higher average interest rates and invested balances, and lower losses realized on investment sales in portfolio repositioning drove revenues in this segment.
Currently, Paychex carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Fiserv, Inc. (FI - Free Report) reported mixed first-quarter 2024 results, wherein earnings outpaced the Zacks Consensus Estimate, while revenues missed the same.
FI’s adjusted EPS of $1.9 surpassed the consensus estimate by 6.2%. The metric gained 19% year over year.
Adjusted revenues of $4.5 billion missed the consensus estimate marginally. The top line decreased slightly on a year-over-year basis.
CRA International Inc. (CRAI - Free Report) reported impressive first-quarter 2024 results, which surpassed the Zacks Consensus Estimate for both earnings and revenues.
CRAI reported an adjusted EPS of $1.96, which beat the Zacks Consensus Estimate by 41% and increased 51.9% year over year.
Revenues amounted to $171.8 million which beat the consensus mark by 6.9% and gained 12.4% from the year-ago quarter.