Paychex, Inc. PAYX is scheduled to report second-quarter fiscal 2021 results on Dec 23, before market open.
Let's check out the expectations in detail.
The Zacks Consensus Estimate for the company’s to-be-reported quarter’s revenues stands at $952.93 million, indicating a decrease of 3.8% from the year-ago reported figure.
The consensus mark for Management Solutions revenues stands at $707 million, indicating a decline of 2.8% from the year-ago reported number. Decline in check volumes (backed by reduction in the number of clients processing payrolls and the number of employees paid) is likely to have weighed on the top line.
The consensus mark for Professional employer organization (“PEO”) and Insurance Solutions revenues stands at $232 million, indicating a decline of 4.9% from the year-ago reported number. Decline in the number of clients’ worksite employees is likely to have weighed on the top line.
The consensus estimate for interest on funds held by clients’ revenues is pegged at $14.51 million, indicating 27.1% year-over-year decline. Lower average investment balances, average interest rates and realized gains are likely to have weighed on segmental revenues.
The consensus mark for earnings is pegged at 66 cents per share, indicating decline of 5.7% from the year-ago quarter’s reported figure. Decline in operating margins is likely to have weighed on the company’s bottom line.
What Our Model Says
Our proven model predicts 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. 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 +4.15% and a Zacks Rank #3.
Paychex, Inc. Price and EPS Surprise
Paychex, Inc. price-eps-surprise | Paychex, Inc. Quote
Other Stocks to Consider
Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these too have the right combination of elements to beat on earnings in their upcoming release.
FLEETCOR Technologies FLT has an Earnings ESP of +3.74% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fidelity National Information Services FIS has an Earnings ESP of +1.97% and a Zacks Rank #3.
Equifax EFX has an Earnings ESP of +2.38% and a Zacks Rank #3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Paychex, Inc. (PAYX) : Free Stock Analysis Report
Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
Equifax, Inc. (EFX) : Free Stock Analysis Report
FleetCor Technologies, Inc. (FLT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research