Compared to Estimates, Paychex (PAYX) Q2 Earnings: A Look at Key Metrics
Paychex (PAYX) reported $1.26 billion in revenue for the quarter ended November 2023, representing a year-over-year increase of 5.7%. EPS of $1.08 for the same period compares to $0.99 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.27 billion, representing a surprise of -0.76%. The company delivered an EPS surprise of +0.93%, with the consensus EPS estimate being $1.07.
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.
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: $930.70 million versus the seven-analyst average estimate of $944.84 million. The reported number represents a year-over-year change of +4%.
Revenue- Interest on funds held for clients: $31.50 million versus $33.38 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +45.2% change.
Revenue- Total service revenue: $1.23 billion compared to the $1.23 billion average estimate based on seven analysts. The reported number represents a change of +5% year over year.
Revenue- PEO and Insurance Services: $295.70 million versus the seven-analyst average estimate of $289.02 million. The reported number represents a year-over-year change of +8.2%.
View all Key Company Metrics for Paychex here>>>
Shares of Paychex have returned +7.5% over the past month versus the Zacks S&P 500 composite's +5.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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
