Paychex to Report Q2 Earnings: Here's What You Should Expect

Paychex, Inc. PAYX will release its second-quarter fiscal 2025 results on Dec. 19, before the bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The company has a decent earnings surprise history, with earnings surpassing the Zacks Consensus Estimate in all the four trailing quarters. The average earnings surprise stands at 1.5%.Paychex, Inc. Price and EPS Surprise Paychex, Inc. price-eps-surprise | Paychex, Inc. QuoteExpectations From PAYX in Q2The Zacks Consensus Estimate for the top line is currently pegged at $1.31 billion, indicating growth of 4.4% from the year-ago actual figure. Revenues from Management Solutions are expected to rise 2.7% year over year. Our estimate currently stands at $955.5 million. We expect an increased number of clients and product penetration.Our estimate for PEO and insurance solution revenue is currently pegged at $319.4 million, which indicates an 8% increase from the year-ago reported figure. We expect an increase in the average number of worksite employees and a rise in PEO insurance revenues as factors for the growth.We expect interest on funds held for clients to increase around 16.8% year over year to $36.8 million, driven by higher average interest rates and average investment balances.The consensus estimate for the bottom line in the to-be-reported quarter is $1.12 per share, which indicates 3.7% year-over-year growth. The continuing trend of demand and revenue growth is expected to have driven the increase.What Our Model SaysOur proven model predicts a likely earnings beat for PAYX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.PAYX has an Earnings ESP of +0.53% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.Recent Results of Key Sector PlayersOmnicom OMC reported impressive third-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.OMC’s earnings of $2 per share beat the consensus estimate by 3.1% and increased 9.1% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 2.3% and increased 8.5% year over year.Equifax EFX reported mixed third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.EFX’s adjusted earnings were $1.8 per share, beating the Zacks Consensus Estimate by a slight margin and increasing by 5.1% from the year-ago quarter’s actual. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 9.3% from the year-ago quarter.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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 Omnicom Group Inc. (OMC): Free Stock Analysis Report Equifax, Inc. (EFX): 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