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Paychex (PAYX) Set to Report Q3 Earnings: What to Expect?

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Paychex, Inc. PAYX is scheduled to report third-quarter fiscal 2022 results on Mar 30, before market open.

Let's check out the expectations in detail.

Q3 Expectations

The Zacks Consensus Estimate for the company’s to-be-reported quarter’s revenues stands at $1.22 billion, indicating an increase of 9.9% from the year-ago reported figure.

The consensus mark for Management Solutions’ revenues stands at $927 million, indicating growth of 9.4% from the year-ago reported number. The uptick is likely to have been aided by higher checks per payroll for HCM services and net gain in worksite employees for HR solutions; higher revenue per client resulting from improved price realization; growth in the company’s client bases across HCM and ancillary products resulting from strong sales performance and high levels of retention; improved market conditions on asset-based revenues for retirement services; and increase in funding for temporary staffing clients.

The consensus mark for Professional employer organization and Insurance Solutions revenues stands at $282 million, indicating growth of 12.8% from the year-ago reported number. The uptick is likely to have been aided by an increase in the number of average worksite employees, the impact of an increase in average wages per worksite employee, higher revenues on state unemployment insurance and rise in PEO health insurance revenues.

The consensus estimate for interest on funds held by clients’ revenues is pegged at $15.69 million, indicating 3.9% year-over-year growth.

The consensus mark for earnings is pegged at $1.04 per share, indicating growth of 8.3% from the year-ago quarter’s reported figure.

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’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Paychex has an Earnings ESP of 0.00% and a Zacks Rank #3.

Paychex, Inc. Price and EPS Surprise

Paychex, Inc. Price and EPS Surprise
Paychex, Inc. Price and EPS Surprise

Paychex, Inc. price-eps-surprise | Paychex, Inc. Quote

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on their respective earnings this season.

Cross Country Healthcare CCRN has an Earnings ESP of +10.21% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cross Country Healthcare’s long-term earnings growth rate is projected at 6.6%. The company has delivered a trailing four-quarter earnings surprise of 41.5%, on average.

Cross Country Healthcare’s shares have surged 73.4% in the past year.

Nielsen Holdings NLSN has an Earnings ESP of +0.81% and a Zacks Rank #1.

Nielsen has an expected earnings growth rate of 1.7% for the current year. The company has delivered a trailing four-quarter earnings surprise of 28.2%, on average.

Robert Half RHI has an Earnings ESP of +3.68% and a Zacks Rank #2.

Robert Half has an expected earnings growth rate of 15.7% for the current year. The company has delivered a trailing four-quarter earnings surprise of 19.5%, on average.

Robert Half’s shares have surged 53.2% in the past year. It’s long-term earnings growth rate is projected at 6.8%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Paychex, Inc. (PAYX) : Free Stock Analysis Report

Robert Half International Inc. (RHI) : Free Stock Analysis Report

Cross Country Healthcare, Inc. (CCRN) : Free Stock Analysis Report

Nielsen Holdings Plc (NLSN) : Free Stock Analysis Report

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