Paychex(US:PAYX) ZACKSยท2025-09-25 14:16Core Viewpoint - Paychex (PAYX) is expected to report quarterly earnings of $1.21 per share, reflecting a year-over-year increase of 4.3%, with revenues projected at $1.54 billion, a 16.5% increase compared to the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised upward by 0.1% in the last 30 days, indicating a reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts project 'Revenue- Management Solutions' to be $1.17 billion, indicating a year-over-year change of +21.4% [4]. - The estimated 'Revenue- Interest on funds held for clients' is $43.75 million, reflecting a +16.7% change from the prior year [5]. - 'Revenue- Total service revenue' is expected to reach $1.50 billion, suggesting a +17.1% year-over-year change [5]. - The average prediction for 'Revenue- PEO and Insurance Services' is $333.29 million, indicating a +4.4% change from the previous year [5]. Investment Balances and Interest Rates - The 'Average investment Balance - Funds held for clients' is expected to be $4.88 billion, up from $4.29 billion reported in the same quarter last year [6]. - Analysts estimate 'Average interest rates earned - Funds held for clients' to be 3.5%, unchanged from the previous year [6]. - The 'Average investment Balance - Corporate cash equivalents and investments' is projected at $1.68 billion, compared to $1.62 billion reported last year [7]. - 'Average interest rates earned - Corporate cash equivalents and investments' is forecasted to be 4.2%, down from 4.9% in the previous year [7]. Stock Performance - Paychex shares have decreased by -7.5% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% performance [7].