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Compared to Estimates, Paychex (PAYX) Q4 Earnings: A Look at Key Metrics

Zacks Equity Research
·2 min read

Paychex (PAYX) reported $1.3 billion in revenue for the quarter ended May 2024, representing a year-over-year increase of 5.3%. EPS of $1.12 for the same period compares to $0.97 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.3 billion, representing a surprise of -0.29%. The company delivered an EPS surprise of +1.82%, with the consensus EPS estimate being $1.10.

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.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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Here is how Paychex performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenue- Management Solutions: $930.30 million versus $932.23 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +2.8% change.

  • Revenue- Interest on funds held for clients: $38.20 million compared to the $38.57 million average estimate based on seven analysts. The reported number represents a change of +53.4% year over year.

  • Revenue- Total service revenue: $1.26 billion versus $1.26 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +4.3% change.

  • Revenue- PEO and Insurance Services: $326.60 million versus the seven-analyst average estimate of $328.81 million. The reported number represents a year-over-year change of +9.1%.

View all Key Company Metrics for Paychex here>>>

Shares of Paychex have returned +4% over the past month versus the Zacks S&P 500 composite's +3.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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Zacks Investment Research