Core Viewpoint - Paychex, Inc. (PAYX) reported strong second-quarter fiscal 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][2]. Financial Performance - Earnings per share were $1.1, surpassing the Zacks Consensus Estimate by 1.8% and increasing 5.6% year-over-year [2]. - Total revenues reached $1.3 billion, slightly exceeding the consensus estimate and reflecting a 4.8% year-over-year growth [2]. - Revenues from the Management Solutions segment rose 3% year-over-year to $962.9 million, beating the estimate of $955.5 million [3]. - Professional employer organization (PEO) and Insurance Solutions revenues were $317.9 million, up 7% year-over-year, but missed the estimate of $319.4 million [3]. - Service revenues increased 5% year-over-year to $1.3 billion, meeting the estimate [4]. - Interest on funds held for clients grew 15% year-over-year to $36.1 million, falling short of the projection of $36.8 million [4]. - EBITDA was $579.1 million, a 5% increase from the previous year, but missed the estimate of $581.3 million [5]. - Operating income rose 6% year-over-year to $538.1 million, slightly exceeding the projection [5]. - The operating margin improved to 40.9%, up 70 basis points year-over-year, but missed the estimate of 41% [5]. Balance Sheet & Cash Flow - At the end of the second quarter of fiscal 2025, cash and cash equivalents were $1.2 billion, down from $1.5 billion in the previous quarter [6]. - Long-term debt stood at $798.9 million, slightly up from $798.7 million in the first quarter of fiscal 2025 [6]. - Cash generated from operating activities was $295 million, with capital expenditure totaling $47 million [6]. Guidance - Paychex expects interest on funds held for clients to be between $145 million and $155 million [7]. - The company anticipates other income to be in the range of $30 million to $35 million [7]. - Paychex currently holds a Zacks Rank 2 (Buy) [7].

Paychex (PAYX) came out with quarterly earnings of $1.14 per share, beating the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.79%. A quarter ago, it was expected that this payroll processor and human-resources services provider would post earnings of $1.14 per share when it actually produced earnings of $1.16, delivering a surprise of 1.75%.Ove ...

Wall Street analysts expect Paychex (PAYX) to post quarterly earnings of $1.12 per share in its upcoming report, which indicates a year-over-year increase of 3.7%. Revenues are expected to be $1.31 billion, up 4.4% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Ahead of a company's earnings disclosure, it is crucial ...

The market expects Paychex (PAYX) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended November 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released o ...

Paychex, Inc. (PAYX) has had an impressive run in the past year, gaining 22%. The companyhas an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get the true sense of the quality and sustainability of its growth.PAYX’s earnings are anticipated to grow 5.5% and 6.6% in fiscal 2025 and 2026, respectively. The company has a long-term earnings growth expectation of 7.3%.Factors That Augur WellPaychex aims to meet clients' HR and payrol ...

Company Overview - Paychex Inc. is a leading provider of payroll, insurance, and human capital management products specifically targeting small and medium-sized businesses [1] - The company has a market capitalization of just above $48 billion and employs over 16,000 people [1] Historical Context - Paychex went public nearly 35 years ago, indicating a long-standing presence in the market [1]

Revenue and Income - Total revenue for the first quarter increased to $1.3 billion, reflecting a 3% increase compared to the prior year period[75]. - Management Solutions revenue was $961.7 million, an increase of 1%, driven by growth in the number of clients and higher product penetration[75]. - PEO and Insurance Solutions revenue reached $319.3 million, reflecting a 7% increase due to growth in average PEO worksite employees[76]. - Total service revenue was $1,281.0 million, a 2% increase from the prior year[73]. - Net income for the first quarter was $427.4 million, a 2% increase compared to $419.2 million in the prior year[74]. - Diluted earnings per share increased to $1.18, reflecting a 2% growth from $1.16 in the prior year[74]. - Adjusted net income increased by 1% to $421.2 million, with adjusted diluted earnings per share rising by 2% to $1.16[80]. Expenses and Tax - Total expenses increased by 3% to $771.8 million for the first quarter compared to the prior year period, driven by an 18% increase in PEO direct insurance costs to $130.3 million and a 6% increase in other expenses to $151.2 million[78]. - The effective income tax rate was 23.3% for the first quarter, compared to 23.7% in the prior year[74]. - The effective income tax rate was 23.3% for the first quarter, a slight decrease from 23.7% in the prior year[80]. Cash Flow and Investments - Net cash provided by operating activities decreased to $546.1 million for the three months ended August 31, 2024, down from $693.0 million in the prior year, a change of $146.9 million[94]. - Net cash used in investing activities was $(110.0) million for the current period, compared to $(13.2) million in the prior year, reflecting a change of $(96.8) million[94]. - Net cash used in financing activities was $(485.0) million, a significant decrease from $1,069.4 million in the prior year, resulting in a change of $(1,554.4) million[94]. - Cash, restricted cash, and total corporate investments amounted to $1.6 billion as of August 31, 2024, with short-term borrowings of $18.9 million and long-term borrowings of $800.0 million[82]. - The company anticipates that its cash flows and available financing will support ongoing operations, capital purchases, and dividend payments for the foreseeable future[82]. Stock and Dividends - Dividends paid to stockholders increased by 10% to $353.4 million[73]. - Cash dividends per common share increased to $0.98 from $0.89 year-over-year[94]. - The company maintains a stock repurchase program with authorization to buy back up to $400.0 million of its common stock, expiring on May 31, 2027[114]. - During the first quarter, the company repurchased a total of 0.8 million shares at an average price of $125.50 per share, totaling approximately $104.0 million[115]. - The total dollar value that may yet be repurchased under the stock repurchase program is approximately $296.0 million[115]. Investment Portfolio - The average interest rate earned on combined funds held for clients and corporate cash equivalents was 3.9% compared to 3.7% for the prior year period[102]. - As of August 31, 2024, the total investment portfolio is expected to average approximately $6.2 billion for the year ending May 31, 2025, with 45% in short-term securities and VRDNs[105]. - The net unrealized losses on the investment portfolio were $80.4 million as of August 31, 2024, down from $162.5 million as of May 31, 2024[106]. - The weighted-average yield-to-maturity for AFS securities was 3.1% as of August 31, 2024, compared to 3.0% as of May 31, 2024[107]. - The company had $3.4 billion invested in AFS securities at fair value as of August 31, 2024[107]. - A hypothetical decrease in longer-term interest rates of 25 basis points could increase the fair value of the AFS securities portfolio by approximately $20.0 million to $25.0 million[107]. Corporate Governance and Controls - As of August 31, 2024, the company's disclosure controls and procedures were deemed effective at a reasonable assurance level[113]. - There have been no material changes in the company's critical accounting policies and estimates as of the latest reporting period[111]. - The company reported no changes in its internal control over financial reporting that materially affected its operations during the fiscal quarter ended August 31, 2024[114]. - The company evaluates critical accounting policies related to revenue recognition, insurance reserves, and stock-based compensation costs among others[111]. - The company has adopted and issued new accounting pronouncements, details of which can be found in the Notes to Consolidated Financial Statements[112]. - The company has a program to manage common stock dilution through its stock repurchase initiative[114]. - The company continues to assess market risk factors as part of its financial condition and results of operations[112].

Paychex (PAYX) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $1.14 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 1.75%. A quarter ago, it was expected that this payroll processor and human-resources services provider would post earnings of $1.10 per share when it actually produced earnings of $1.12, delivering a surprise of 1.82%. Ov ...

Paychex, Inc. (PAYX) will release its first-quarter fiscal 2025 results on Oct. 1, before market open. See Zacks Earnings Calendar to stay ahead of market-making news. PAYX has delivered a decent earnings surprise in the trailing four quarters. The figure outpaced the Zacks Consensus Estimate at the same time, delivering an earnings surprise of 1.5%, on average. Paychex's First-Quarter Expectations The consensus estimates for Paychex's first-quarter fiscal 2025 revenues are pegged at $1.3 billion, indicatin ...

Analysts on Wall Street project that Paychex (PAYX) will announce quarterly earnings of $1.14 per share in its forthcoming report, representing no change year over year. Revenues are projected to reach $1.31 billion, increasing 2.2% from the same quarter last year. Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. Ahead of a company's e ...