Paychex, Inc. PAYX will release its first-quarter fiscal 2025 results on Oct. 1, before market open.
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Paychex, Inc. Price and EPS Surprise
Paychex, Inc. price-eps-surprise | Paychex, Inc. Quote
PAYX has delivered a decent earnings surprise in the trailing four quarters. The figure outpaced the Zacks Consensus Estimate at the same time, delivering an earnings surprise of 1.5%, on average.
Paychex’s First-Quarter Expectations
The consensus estimates for Paychex’s first-quarter fiscal 2025 revenues are pegged at $1.3 billion, indicating a 2.2% increase from the year-ago quarter’s reported figure. The top line is anticipated to have been driven by client growth, higher average worksite employees and increased average interest rates.
We anticipate PEO and insurance solution revenues to be $320.2 million, which indicates a 7.5% rise from the year-ago quarter’s reported figure. Growth in PEO and insurance solution revenues is expected to have been driven by higher average worksite employees.
Our estimate for revenues from Management Solutions is pegged at $958.2 million, indicating a marginal rise on a year-over-year basis. Management Solutions is anticipated to have benefited from the rising number of clients served across PAYX’s HCM solutions and increased product penetration.
Interest on funds held for clients is expected to be $38 million, implying 16.2% growth from the year-ago quarter’s actual. The increase is likely to have resulted from higher average interest rates and invested balances and lower realized losses on investment sales related to portfolio repositioning.
The Zacks Consensus Estimate for earnings is pegged at $1.1 per share flat with the year-ago quarter’s figure.
What Our Model Says About PAYX
Our proven model does not conclusively predict an earnings beat for Paychex this time around. 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 is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Paychex has an Earnings ESP of +2.55% and a Zacks Rank #4 (Sell) at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Snapshot of Other Players
CRA International, Inc. CRAI reported impressive second-quarter 2024 results. CRAI’s quarterly adjusted EPS came in at $1.83, which surpassed the Zacks Consensus Estimate by 22.8% and increased 28.9% year over year. Revenues of $171.4 million beat the consensus mark by 2.1% and increased 5.9% from the year-ago quarter’s actual.
Envestnet, Inc. ENV reported mixed second-quarter 2024 results. ENV’s earnings per share were 55 cents, missing the Zacks Consensus Estimate by 12.7%. The bottom line increased 19.6% year over year. Total revenues of $348.3 million beat the consensus estimate by 1.6% and grew 11.5% on a year-over-year basis.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
