Gear Up for Paychex (PAYX) Q2 Earnings: Wall Street Estimates for Key Metrics
The upcoming report from Paychex (PAYX) is expected to reveal quarterly earnings of $1.07 per share, indicating an increase of 8.1% compared to the year-ago period. Analysts forecast revenues of $1.27 billion, representing an increase of 6.5% year over year.
Over the last 30 days, there has been a downward revision of 0.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Given this perspective, it's time to examine the average forecasts of specific Paychex metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts predict that the 'Revenue- Management Solutions' will reach $944.84 million. The estimate indicates a change of +5.5% from the prior-year quarter.
Analysts expect 'Revenue- Interest on funds held for clients' to come in at $33.38 million. The estimate indicates a change of +53.8% from the prior-year quarter.
The average prediction of analysts places 'Revenue- Total service revenue' at $1.23 billion. The estimate indicates a year-over-year change of +5.6%.
Analysts' assessment points toward 'Revenue- PEO and Insurance Services' reaching $289.02 million. The estimate suggests a change of +5.8% year over year.
The collective assessment of analysts points to an estimated 'Average investment Balance - Funds held for clients' of $4.08 billion. Compared to the present estimate, the company reported $4.01 billion in the same quarter last year.
According to the collective judgment of analysts, 'Average investment Balance - Corporate cash equivalents and investments' should come in at $1.50 billion. The estimate is in contrast to the year-ago figure of $1.35 billion.
View all Key Company Metrics for Paychex here>>>
Paychex shares have witnessed a change of +7.9% in the past month, in contrast to the Zacks S&P 500 composite's +5.2% move. With a Zacks Rank #4 (Sell), PAYX is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Paychex, Inc. (PAYX) : Free Stock Analysis Report
