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Paychex (PAYX) Set to Report Q4 Earnings: What to Expect?

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·3-min read
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Paychex, Inc. PAYX is scheduled to report fourth-quarter fiscal 2022 results on Jun 29, before market open.

Let's check out the expectations in detail.

Q4 Expectations

The Zacks Consensus Estimate for the company’s to-be-reported quarter’s revenues stands at $1.11 billion, indicating an increase of 8% from the year-ago reported figure.

The consensus mark for Management Solutions’ revenues stands at $816 million, indicating growth of 7.9% from the year-ago reported number. The uptick is likely to have been aided by growth in the company’s client base across human capital management ("HCM") offerings resulting from strong sales performance and high levels of retention; higher checks per payroll for HCM services and net gain in worksite employees for HR solutions; improved revenues per client resulting from enhanced price realization; expansion of HCM ancillary services; and growth in payroll funding and outsourcing services for temporary staffing clients.

The consensus mark for Professional Employer Organization (“PEO”) and Insurance Solutions’ revenues stands at $281 million, indicating growth of 8.9% from the year-ago reported number. The uptick is likely to have been aided by an increase in the number of average worksite employees, rise 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 $15.14 million, indicating 4.4% year-over-year growth.

The consensus mark for earnings is pegged at 79 cents per share, indicating growth of 9.7% 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 #2.

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.

Republic Services RSG has an Earnings ESP of +0.75% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Republic Services has an expected earnings growth rate of 11.9% for the current year. RSG delivered a trailing four-quarter earnings surprise of 8.3%, on average.

Republic Services’ long-term earnings growth rate is projected at 10.5%.

ABM Industries ABM has an Earnings ESP of +0.83% and a Zacks Rank of #3.

ABM Industries has an expected earnings growth rate of 1.9% for the current year. ABM delivered a trailing four-quarter earnings surprise of 10.9%, on average.

Mastercard MA has an Earnings ESP of +0.03% and a Zacks Rank #3.

Mastercard has an expected earnings growth rate of 25.2% for the current year. Mastercard delivered a trailing four-quarter earnings surprise of 14.2%, on average.

Mastercard’s long-term earnings growth rate is projected at 20.2%.

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


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