Paychex Q3 Earnings & Revenues Surpass Estimates, Increase Y/Y

Paychex, Inc. PAYX has reported impressive third-quarter fiscal 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.See Zacks Earnings Calendar to stay ahead of market-making news.PAYX’s fiscal third-quarter earnings of $1.49 per share beat the Zacks Consensus Estimate by a slight margin and increased 8% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by a slight margin and gained 4.8%  from the year-ago quarter.The company’s shares have gained 18.6% in a year compared with the 20.6% and 10.7% rallies of the industry and the Zacks S&P 500 composite, respectively.One-Year Price Performance Image Source: Zacks Investment Research PAYX’s Quarterly PerformanceRevenues from the Management Solutions segment increased 5% year over year to $1.1 million, meeting our estimate. Professional employer organization (“PEO”) and Insurance Solutions’ revenues were $365.4 million, up 6% from the year-ago quarter. The figure missed our expectation of $372.6 million.Service revenues gained 5% year over year to $1.5 billion, meeting our anticipated figure. Interest on funds held for clients dipped 2% from the year-ago quarter to $42.9 million, surpassing our projection of $38.4 million. EBITDA of $734.9 million gained 6% from the year-ago quarter, missing our expectation of $755.1 million. Operating income increased 6% year over year to $691.8 million, missing our projection of $707.6 million. The operating margin was 45.8%, up 70 basis points from the year-ago quarter. The reported figure surpassed our estimate of 42.8%.Balance Sheet & Cash Flow of PaychexThe company exited the third quarter of fiscal 2025 with cash and cash equivalents of $1.6 billion compared with $1.2 billion in the preceding quarter. The long-term debt totaled $799 million compared with $798.9 million in the second quarter of fiscal 2025.Cash generated from operating activities amounted to $716 million, while the capital expenditure totaled $48.7 million.PAYX’s FY25 GuidancePaychex anticipates interest on funds held for clients of $145-$155 million for fiscal 2025. PAYX anticipates other income of $30-$35 million.The company carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings SnapshotsIQVIA Holdings Analytics Inc. IQV reported impressive fourth-quarter 2024 results.IQV’s adjusted earnings were $3.12 per share, outpacing the Zacks Consensus Estimate marginally and rising 9.9% on a year-over-year basis. Total revenues of $4 billion surpassed the consensus estimate by a slight margin and grew 2.3% from the year-ago quarter.Gartner, Inc. IT posted better-than-expected fourth-quarter 2024 results.IT's adjusted earnings per share of $5.6 beat the Zacks Consensus Estimate by 69.3% and increased 79.3% from the year-ago quarter. Revenues of $1.7 billion surpassed the consensus estimate by 1.8% and improved 8.2% year over year.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 Report Gartner, Inc. (IT): Free Stock Analysis Report IQVIA Holdings Inc. (IQV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks