Paychex(US:PAYX) ZACKSยท2024-10-01 15:25Core Insights - Paychex, Inc. (PAYX) reported strong first-quarter fiscal 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1] - Earnings per share were $1.2, surpassing the estimate by 1.8% and reflecting a 1.8% increase year-over-year [1] - Total revenues reached $1.3 billion, slightly above consensus and up 2.5% from the previous year [1] Revenue Breakdown - Management Solutions segment revenues increased by 1% year-over-year to $961.7 million, beating the estimate of $958.2 million [3] - Professional employer organization (PEO) and Insurance Solutions revenues totaled $319.3 million, up 7% year-over-year, but missed the estimate of $320.2 million [3] - Service revenues of $1.3 billion grew by 2% year-over-year, aligning with estimates [4] Financial Performance - EBITDA was $585.5 million, a 1% increase from the previous year, exceeding the estimate of $577.3 million [5] - Operating income rose by 2% year-over-year to $546.7 million, surpassing the projection of $533.2 million [5] - Operating margin was 41.5%, down 20 basis points from the previous year, but above the estimate of 40.5% [5] Balance Sheet & Cash Flow - Cash and cash equivalents stood at $1.5 billion, unchanged from the previous quarter [5] - Long-term debt was $798.7 million, slightly up from $798.6 million in the fourth quarter of fiscal 2024 [5] - Cash generated from operating activities was $546.1 million, with capital expenditure at $35.6 million [6] FY25 Guidance - The company expects interest on funds held for clients to be between $145 million and $155 million [7] - Anticipated other income is projected to be between $30 million and $35 million [7]