Yahoo Finance Paychex (PAYX) to Report Q4 Earnings: What's in the Offing?
Paychex, Inc. PAYX will release its fourth-quarter fiscal 2024 results on Jun 26, before market open.
PAYX surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average negative surprise of 0.79%.
Paychex, Inc. Price and EPS Surprise
Paychex, Inc. price-eps-surprise | Paychex, Inc. Quote
Q4 Expectations
The consensus estimate for Paychex’s fourth-quarter fiscal 2024 revenues is pegged at $1.3 billion, indicating a 5.6% increase from the year-ago quarter’s reported figure. The top line is expected to have been driven by growth in clients, higher average worksite employees and increased average interest rates.
We anticipate PEO and insurance solution revenues to be $327.7 million, which indicates a 9.4% increase from the year-ago quarter’s reported figure. Growth in PEO and insurance solution revenues is likely to have resulted from higher average worksite employees.
Our estimate for revenues from Management Solutions is pegged at $930.2 million, implying a 2.8% year-over-year rise. Management Solutions is likely to have benefited from growth in the number of clients served across the suite of HCM solutions and an increase in product penetration.
Interest on funds held for clients is expected to be $41.5 million, indicating a 66.8% rise from the year-ago quarter’s actual. The increase is likely to have resulted from higher average interest rates.
The Zacks Consensus Estimate for earnings is pegged at $1.1 per share, suggesting 13.4% growth on a year-over-year basis. The bottom line is expected to have been positively impacted by the longstanding tradition of expense discipline.
What Our Model Says
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 currently 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.
Earnings Snapshot of Other Players
IQVIA Holdings Analytics Inc. IQV reported impressive first-quarter 2024 results.
IQV’s adjusted earnings (excluding 98 cents from non-recurring items) were $2.5 per share, beating the Zacks Consensus Estimate by 2.8% and increasing 3.7% from the year-ago reported figure. Total revenues of $3.7 billion surpassed the consensus estimate by 1.2% and grew 2.3% from the year-ago quarter.
The Interpublic Group of Companies, Inc. IPG posted mixed first-quarter 2024 results.
IPG’s adjusted earnings (excluding 7 cents from non-recurring items) of 36 cents per share met the Zacks Consensus Estimate but decreased 5.3% on a year-over-year basis. Revenues before billable expenses (net revenues) of $2.2 billion surpassed the consensus estimate marginally but decreased 13.4% year over year. Total revenues of $2.5 billion declined 1% and met our estimate.
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Paychex, Inc. (PAYX) : Free Stock Analysis Report
Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report
IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report
