We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Paychex (PAYX) Reports Q1 Earnings: What Key Metrics Have to Say
Read MoreHide Full Article
Paychex (PAYX - Free Report) reported $1.32 billion in revenue for the quarter ended August 2024, representing a year-over-year increase of 2.5%. EPS of $1.16 for the same period compares to $1.14 a year ago.
The reported revenue represents a surprise of +0.31% over the Zacks Consensus Estimate of $1.31 billion. With the consensus EPS estimate being $1.14, the EPS surprise was +1.75%.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Paychex performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average investment Balance - Funds held for clients: $4.29 billion versus the three-analyst average estimate of $4.21 billion.
Average interest rates earned (exclusive of net realized gains) - Funds held for clients: 3.5% versus the three-analyst average estimate of 3.3%.
Average investment Balance - Corporate cash equivalents and investments: $1.62 billion versus $1.75 billion estimated by two analysts on average.
Average interest rates earned (exclusive of net realized gains) - Corporate cash equivalents and investments: 4.9% compared to the 5.1% average estimate based on two analysts.
Revenue- Management Solutions: $961.70 million versus the six-analyst average estimate of $959.10 million. The reported number represents a year-over-year change of +0.7%.
Revenue- Interest on funds held for clients: $37.50 million versus the six-analyst average estimate of $36.37 million. The reported number represents a year-over-year change of +14.7%.
Revenue- Total service revenue: $1.28 billion compared to the $1.28 billion average estimate based on six analysts. The reported number represents a change of +2.2% year over year.
Revenue- PEO and Insurance Services: $319.30 million versus the six-analyst average estimate of $318.88 million. The reported number represents a year-over-year change of +7.2%.
Shares of Paychex have returned +2.3% over the past month versus the Zacks S&P 500 composite's +2.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Paychex (PAYX) Reports Q1 Earnings: What Key Metrics Have to Say
Paychex (PAYX - Free Report) reported $1.32 billion in revenue for the quarter ended August 2024, representing a year-over-year increase of 2.5%. EPS of $1.16 for the same period compares to $1.14 a year ago.
The reported revenue represents a surprise of +0.31% over the Zacks Consensus Estimate of $1.31 billion. With the consensus EPS estimate being $1.14, the EPS surprise was +1.75%.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Paychex performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Average investment Balance - Funds held for clients: $4.29 billion versus the three-analyst average estimate of $4.21 billion.
- Average interest rates earned (exclusive of net realized gains) - Funds held for clients: 3.5% versus the three-analyst average estimate of 3.3%.
- Average investment Balance - Corporate cash equivalents and investments: $1.62 billion versus $1.75 billion estimated by two analysts on average.
- Average interest rates earned (exclusive of net realized gains) - Corporate cash equivalents and investments: 4.9% compared to the 5.1% average estimate based on two analysts.
- Revenue- Management Solutions: $961.70 million versus the six-analyst average estimate of $959.10 million. The reported number represents a year-over-year change of +0.7%.
- Revenue- Interest on funds held for clients: $37.50 million versus the six-analyst average estimate of $36.37 million. The reported number represents a year-over-year change of +14.7%.
- Revenue- Total service revenue: $1.28 billion compared to the $1.28 billion average estimate based on six analysts. The reported number represents a change of +2.2% year over year.
- Revenue- PEO and Insurance Services: $319.30 million versus the six-analyst average estimate of $318.88 million. The reported number represents a year-over-year change of +7.2%.
View all Key Company Metrics for Paychex here>>>Shares of Paychex have returned +2.3% over the past month versus the Zacks S&P 500 composite's +2.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.