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Paychex (PAYX) reported $1.32 billion in revenue for the quarter ended November 2024, representing a year-over-year increase of 4.7%. EPS of $1.14 for the same period compares to $1.08 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.31 billion, representing a surprise of +0.29%. 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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Paychex performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
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Average investment Balance - Funds held for clients: $4.25 billion versus $4.13 billion estimated by three analysts on average.
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Average interest rates earned (exclusive of net realized gains) - Funds held for clients: 3.4% compared to the 3.4% average estimate based on three analysts.
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Average investment Balance - Corporate cash equivalents and investments: $1.47 billion versus $1.52 billion estimated by two analysts on average.
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Average interest rates earned (exclusive of net realized gains) - Corporate cash equivalents and investments: 4.3% versus the two-analyst average estimate of 4.8%.
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Revenue- Management Solutions: $962.90 million versus the six-analyst average estimate of $959.27 million. The reported number represents a year-over-year change of +3.5%.
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Revenue- Interest on funds held for clients: $36.10 million versus $34.81 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +14.6% change.
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Revenue- Total service revenue: $1.28 billion compared to the $1.28 billion average estimate based on six analysts. The reported number represents a change of +4.4% year over year.
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Revenue- PEO and Insurance Services: $317.90 million versus the six-analyst average estimate of $319.37 million. The reported number represents a year-over-year change of +7.5%.
View all Key Company Metrics for Paychex here>>>
Shares of Paychex have returned -4.2% over the past month versus the Zacks S&P 500 composite's -0.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.