Gear Up for Paychex (PAYX) Q1 Earnings: Wall Street Estimates for Key Metrics

Core Viewpoint - Analysts project that Paychex will announce quarterly earnings of $1.14 per share, indicating no change year over year, with revenues expected to reach $1.31 billion, reflecting a 2.2% increase from the same quarter last year [1] Group 1: Earnings Estimates - There has been no revision in the consensus EPS estimate for the quarter over the last 30 days, indicating analysts' collective reconsideration of their initial forecasts [1][2] - Changes in earnings estimates are crucial for predicting potential investor reactions to the stock, with empirical studies showing a strong relationship between earnings estimate revisions and short-term price performance [2] Group 2: Revenue Projections - Analysts predict 'Revenue- Management Solutions' will reach $959.10 million, a change of +0.4% from the prior-year quarter [4] - The consensus estimate for 'Revenue- Total service revenue' stands at $1.28 billion, indicating a +2% change from the year-ago quarter [4] - 'Revenue- PEO and Insurance Services' is projected to reach $318.88 million, reflecting a +7.1% change from the year-ago quarter [5] Group 3: Investment Metrics - Analysts estimate 'Average investment Balance - Funds held for clients' will reach $4.21 billion, compared to $4.16 billion in the same quarter of the previous year [5] - 'Average interest rates earned (exclusive of net realized gains) - Funds held for clients' is forecasted to be 3.3%, up from 3.2% year-over-year [6] - 'Average investment Balance - Corporate cash equivalents and investments' is expected to reach $1.75 billion, compared to $1.71 billion in the previous year [6] Group 4: Market Performance - Shares of Paychex have changed by +1.9% in the past month, compared to a +1.7% move of the Zacks S&P 500 composite [7] - Paychex holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near future [7]