Here's What Key Metrics Tell Us About Paychex (PAYX) Q1 Earnings
For the quarter ended August 2023, Paychex (PAYX) reported revenue of $1.29 billion, up 6.6% over the same period last year. EPS came in at $1.14, compared to $1.03 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.28 billion, representing a surprise of +0.12%. The company delivered an EPS surprise of +1.79%, with the consensus EPS estimate being $1.12.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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: $955.50 million compared to the $955.11 million average estimate based on seven analysts. The reported number represents a change of +5.5% year over year.
Revenue- Interest on funds held for clients: $32.70 million versus the seven-analyst average estimate of $33.04 million. The reported number represents a year-over-year change of +82.7%.
Revenue- Total service revenue: $1.25 billion versus the seven-analyst average estimate of $1.25 billion. The reported number represents a year-over-year change of +5.5%.
Revenue- PEO and Insurance Services: $297.80 million compared to the $297.18 million average estimate based on seven analysts. The reported number represents a change of +5.3% year over year.
View all Key Company Metrics for Paychex here>>>
Shares of Paychex have returned -7.6% over the past month versus the Zacks S&P 500 composite's -2.9% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Paychex, Inc. (PAYX) : Free Stock Analysis Report
