Compared to Estimates, Paychex (PAYX) Q2 Earnings: A Look at Key Metrics

Paychex (PAYX) reported $1.32 billion in revenue for the quarter ended November 2024, representing a year-over-year increase of 4.7%. EPS of $1.14 for the same period compares to $1.08 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.31 billion, representing a surprise of +0.29%. The company delivered an EPS surprise of +1.79%, with the consensus EPS estimate being $1.12.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.Here is how Paychex performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Average investment Balance - Funds held for clients: $4.25 billion versus $4.13 billion estimated by three analysts on average. Average interest rates earned (exclusive of net realized gains) - Funds held for clients: 3.4% compared to the 3.4% average estimate based on three analysts. Average investment Balance - Corporate cash equivalents and investments: $1.47 billion versus $1.52 billion estimated by two analysts on average. Average interest rates earned (exclusive of net realized gains) - Corporate cash equivalents and investments: 4.3% versus the two-analyst average estimate of 4.8%. Revenue- Management Solutions: $962.90 million versus the six-analyst average estimate of $959.27 million. The reported number represents a year-over-year change of +3.5%. Revenue- Interest on funds held for clients: $36.10 million versus $34.81 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +14.6% change. Revenue- Total service revenue: $1.28 billion compared to the $1.28 billion average estimate based on six analysts. The reported number represents a change of +4.4% year over year. Revenue- PEO and Insurance Services: $317.90 million versus the six-analyst average estimate of $319.37 million. The reported number represents a year-over-year change of +7.5%. View all Key Company Metrics for Paychex here>>>Shares of Paychex have returned -4.2% over the past month versus the Zacks S&P 500 composite's -0.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Paychex, Inc. (PAYX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks