Data privacy regulations, communication barriers and geopolitical risks are casting a shadow on the Zacks Outsourcing industry. Quality control issues and loss of control are other headwinds. However, the need to cut down costs, the onset of remote work, the rising focus on cybersecurity awareness, and the surge in trends such as AI and ML are the key drivers.Investors can consider Barrett Business Services, Inc. (BBSI) , The Brink's Company, Inc. (BCO) , and Capgemini SE (CGEMY) from the Outsourcing market ...

DUBLIN, July 7, 2025 /PRNewswire/ -- Payslip, the Global Payroll Control Platform, has announced the successful go-live of its customer Houlihan Lokey with Global Payroll Connect from Workday (NASDAQ: WDAY), the AI Platform for people, money and agents. Earlier this year, Payslip became the first vendor-agnostic partner to receive certification for each of the core features of Global Payroll Connect after Workday introduced the platform in November 2024. This seamless integration with Payslip has already de ...

Group 1: Labor Market Overview - The U.S. job market exceeded expectations for the 11th consecutive month, with 147,000 jobs added in June compared to the forecast of 110,000 [1] - The unemployment rate decreased from 4.2% to 4.1%, better than the expected 4.3% [1] - Average hourly earnings increased by 0.2% month-over-month and 3.7% year-over-year [1] Group 2: Payroll Stocks Performance - Paylocity Holding Corporation (PCTY) and Dayforce (DAY) saw stock increases of over +2% and +1% respectively, both classified as Zacks Rank 3 (Hold) [2] - Paychex (PAYX) is noted for its integrated Human Capital Management (HCM) solutions and has a Zacks Rank 2 (Buy), with expectations for steady growth in top and bottom lines [3] - Maximus (MMS) is identified as a strong buy with a Zacks Rank 1 (Strong Buy), despite a 21% decline from its 52-week high, attributed to a spike in FY25 EPS estimates by 7% [5] Group 3: Market Reactions and Economic Implications - The dip in Maximus stock followed the announcement of 7,000 federal government job cuts, but this may be an overreaction given the addition of 47,000 state government jobs and 19,000 social assistance jobs [6] - The resilient labor market and better-than-expected jobs report contribute positively to the stock market's recovery, making payroll stocks particularly attractive [8]

Company Overview - Nu Holdings is a large-cap fintech company with a market capitalization of $65 billion, primarily operating in Latin America [1] - The company has experienced significant growth, with its stock price increasing by 230% over the past three years [2] Customer Base and Market Potential - As of March 31, Nu has 119 million customers, with 59% of Brazil's adult population using its services, effectively doubling its customer base in the last three years [5] - Nu also operates in Mexico and Colombia, which have a combined population of 185 million, indicating substantial growth potential in these markets [5] Growth Strategy - Nu has only captured 5% of its total addressable market in Brazil, suggesting significant room for expansion [6] - The company is focused on innovation, recently launching private payroll loans in Brazil to compete with established players [6] - Additional services like NuTravel and NuCel indicate Nu's intention to diversify beyond traditional financial services [7] Financial Performance - Nu has shown strong financial performance, with diluted earnings per share increasing by 47% year over year in Q1 [12] - Analysts forecast that earnings per share will grow at an annualized rate of 36% from 2024 to 2027 [12] - The stock is currently trading at a forward P/E ratio of 23.5, presenting a potential buying opportunity for investors [12] Economic Environment - Nu's operations are heavily influenced by external factors such as interest rates, which can significantly impact revenue and earnings [9] - The company operates in a developing region, which offers growth opportunities but also presents risks related to economic volatility, political instability, and corruption [10][11]

Paychex posted solid results, so why did the stock fall?Shares of Paychex (PAYX -9.69%) fell as much as 9.9% on Wednesday morning, tripped up by an unimpressive earnings report. The payroll processing services expert's stock recovered slightly to a 7.6% drop as of 12:20 p.m. ET.Paychex numbers land on targetIn the fourth quarter of fiscal year 2025, Paychex saw revenues rise 10% year over year to $1.43 billion. Adjusted earnings ticked 6.3% higher, landing at $1.19 per diluted share.The results were in line ...

Paychex (PAYX -8.29%) reported fourth quarter 2025 earnings on June 25, 2025, posting 10% total revenue growth in the fourth quarter, driven by the completed Paycor acquisition, 6% revenue growth for the full year, 6% adjusted diluted EPS growth for the year, and 60 basis points of adjusted operating income margin expansion despite significant ERTC headwinds. Integration progress outpaced management expectations, with cost synergy targets raised and guidance for fiscal 2026 projects total revenue growth of ...

Paychex (PAYX) came out with quarterly earnings of $1.19 per share, beating the Zacks Consensus Estimate of $1.18 per share. This compares to earnings of $1.12 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of +0.85%. A quarter ago, it was expected that this payroll processor and human-resources services provider would post earnings of $1.48 per share when it actually produced earnings of $1.49, delivering a surprise of +0.68% ...

Paychex (PAYX) Q4 2025 Earnings Call June 25, 2025 09:30 AM ET Company Participants Bob Schrader - CFO & Member of the Executive CommitteeJohn Gibson - President & CEOBryan Bergin - Managing DirectorSamad Samana - Managing DirectorJames Faucette - Managing DirectorKartik Mehta - Executive MD & Director of ResearchScott Wurtzel - SVP - Equity Research Conference Call Participants Mark Marcon - Senior Research AnalystTien-tsin Huang - Senior AnalystAndrew Nicholas - Equity Research AnalystAshish Sabadra - Inf ...

Financial Data and Key Metrics Changes - Total revenue for Q4 increased by 10% to $1.4 billion; excluding Paycor, total revenue increased by 3% [21] - For the full fiscal year 2025, total revenue grew by 6% to $5.6 billion [24] - Adjusted diluted earnings per share increased by 6% to $1.19 in Q4, while diluted earnings per share decreased by 22% to $0.82 [23] - Adjusted operating income margins for Q4 were 40.4%, an increase of approximately 20 basis points [23] Business Line Data and Key Metrics Changes - Management Solutions revenue increased by 12% to $1 billion in Q4, driven by the addition of Paycor and higher revenue per client [22] - PEO and Insurance Solutions revenue increased by 4% to $340 million, supported by growth in average PEO worksite employees [22] - Interest on funds held for clients increased by 18% to $45 million in Q4, primarily due to the inclusion of Paycor balances [22] Market Data and Key Metrics Changes - The number of clients served increased to approximately 800,000, with HR outsourcing worksite employees rising to 2.5 million [6] - Client retention rates improved year over year, indicating strong value provided to clients [5] Company Strategy and Development Direction - The company is focused on integrating Paycor and enhancing customer experience while maintaining industry-leading operating margins [5] - A strategic decision was made to accelerate investments for future growth, particularly in technology and sales capabilities [7][54] - The company aims to achieve approximately $90 million in cost synergies in fiscal year 2026, with additional synergy opportunities identified [6][90] Management's Comments on Operating Environment and Future Outlook - The management noted a mix of optimism and uncertainty in the market, with small businesses remaining fundamentally healthy despite external pressures [17] - The company expects total revenue growth in fiscal year 2026 to be between 16.5% and 18.5%, with Management Solutions projected to grow by 20% to 22% [27] - Management expressed confidence in navigating the current macro environment and emphasized the importance of operational efficiency [26][19] Other Important Information - The company has completed key integration activities post-Paycor acquisition and is now operating as one entity [4] - A comprehensive territory assessment and reassignment review across sales teams has been completed to align with market segments [9] Q&A Session Summary Question: Can you discuss the distractions related to the sales force integration and its impact on Q4? - Management acknowledged that the sales transformation was planned prior to the acquisition and all changes were made in Q4 to minimize future disruptions [33][34] Question: What are the expectations for organic growth versus cross-selling? - Management indicated a focus on 1% to 3% organic client growth while emphasizing product penetration and disciplined growth strategies [50] Question: How is the integration of Paycor's sales team progressing? - Management reported that they retained a significant portion of Paycor's sales and marketing organization and are fully staffed, with plans to continue investing in sales [62] Question: What is the outlook for Paycor's growth in fiscal year 2026? - Management expects Paycor to be a strong double-digit grower, with some conservatism in guidance to ensure deliverability [59] Question: How will the company balance capital allocation between shareholder returns and debt reduction? - Management stated that the primary focus remains on investing in the business, with dividends being the main method of returning excess cash to shareholders [76]

ROSELAND, N.J., June 25, 2025 /PRNewswire/ -- ADP (Nasdaq: ADP), a leading global provider of Human Capital Management (HCM) solutions, is scheduled to release its financial results for the fourth fiscal quarter ending June 30, 2025 before the opening of the Nasdaq on Wednesday, July 30, 2025. ADP will also be hosting a conference call at 8:30 a.m. ET on July 30, 2025 to discuss these results. Maria Black, President & Chief Executive Officer, Peter Hadley, Chief Financial Officer and Matthew Keating, Vice P ...