Insights Into Paychex (PAYX) Q4: Wall Street Projections for Key Metrics

Core Insights - Paychex (PAYX) is expected to report quarterly earnings of $1.19 per share, reflecting a 6.3% increase year over year, with revenues projected at $1.39 billion, a 7.3% increase compared to the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised down by 1.8% in the last 30 days, indicating a reassessment by analysts [2] - Revisions to earnings estimates are crucial for predicting investor actions, as empirical research shows a strong correlation between these revisions and short-term stock price performance [3] Revenue Projections - Analysts estimate 'Revenue- Management Solutions' at $1.01 billion, a 9% increase from the prior year [5] - 'Revenue- Interest on funds held for clients' is projected to reach $40.14 million, up 5.1% year over year [5] - 'Revenue- Total service revenue' is expected to be $1.36 billion, reflecting a 7.9% increase from the previous year [5] - 'Revenue- PEO and Insurance Services' is forecasted to be $341.79 million, a 4.7% increase year over year [6] Investment Balances - The 'Average investment Balance - Funds held for clients' is projected at $4.43 billion, down from $4.68 billion reported in the same quarter last year [6] - 'Average investment Balance - Corporate cash equivalents and investments' is expected to be $1.63 billion, compared to $1.65 billion a year ago [7] Interest Rates - Analysts expect 'Average interest rates earned - Funds held for clients' to be 3.4%, down from 3.5% in the same quarter last year [7] - 'Average interest rates earned - Corporate cash equivalents and investments' is projected to be 4.3%, compared to 5.3% a year ago [8] Stock Performance - Over the past month, Paychex shares have declined by 3.8%, while the Zacks S&P 500 composite has increased by 0.6% [9] - Paychex holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the near term [9]