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Paychex (PAYX) to Report Q1 Earnings: What's in the Cards?

Paychex, Inc. PAYX is scheduled to report first-quarter fiscal 2023 results on Sep 28, before market open.

Let's check out the expectations in detail.

Q1 Expectations

The Zacks Consensus Estimate for PAYX’s to-be-reported fiscal quarter’s revenues stands at $1.18 billion, indicating an increase of 9.4% from the year-ago fiscal quarter’s reported figure.

The consensus mark for Management Solutions’ revenues stands at $876 million, indicating growth of 8.7% from the year-ago fiscal quarter’s reported number. The uptick is likely to have been aided by higher revenue per client and growth in our payroll client base.

The consensus mark for Professional Employer Organization (PEO) and Insurance Solutions’ revenues stands at $290 million, indicating growth of 10.3% from the year-ago fiscal quarter’s reported number.

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

The consensus estimate for interest on funds held by clients’ revenues is pegged at $17.68 million, indicating 21.9% growth from the year-ago fiscal quarter’s reported figure.

The consensus mark for earnings is pegged at 97 cents per share, indicating growth of 9% from the year-ago fiscal 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. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

Performances of Other Business Services Companies

Equifax EFX reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.

EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis.Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.

IQVIA Holdings IQV reported solid second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.

IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.

Omnicom Group OMC reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.

OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.


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