Paychex (PAYX) Q4 Earnings Beat on Segmental Performance

Core Insights - Paychex, Inc. (PAYX) reported strong fourth-quarter results for fiscal 2024, driven by increased product penetration, higher Professional Employer Organization (PEO) insurance revenues, and rising average interest rates [1] Revenue Performance - Management Solutions segment revenues reached $930.3 million, reflecting a 3% year-over-year increase, slightly above the estimate of $930.2 million, indicating 2.8% growth from the previous year [2] - Interest on funds revenues amounted to $38.2 million, a significant 54% increase year-over-year, although it fell short of the estimated $41.5 million, which implied a 66.8% growth [3] - PEO and Insurance Solutions segment revenues were $326.6 million, up 9% from the year-ago quarter, but below the anticipated $327.7 million, indicating 9.4% growth year-over-year [5] - Total revenues for Paychex were $1.3 billion, which missed the consensus estimate slightly but still represented a 5.3% year-over-year increase [4] Earnings Performance - Paychex's earnings per share (EPS) of $1.1 exceeded the Zacks Consensus Estimate by 1.8% and increased by 15.5% year-over-year [4] - The earnings beat did not significantly impact market performance, as there was no major price change following the earnings release [6]