Paychex to Report Q3 Earnings: Here's What to Expect From the Stock?

Paychex, Inc. PAYX will release its third-quarter fiscal 2025 results on March 26, before market open.See Zacks Earnings Calendar to stay ahead of market-making news.PAYX has delivered a decent earnings surprise in the trailing four quarters, with the metric outpacing the Zacks Consensus Estimate in all quarters, delivering an earnings surprise of 1.7%, on average.Paychex, Inc. Price, Consensus and EPS Surprise  Paychex, Inc. price-consensus-eps-surprise-chart | Paychex, Inc. QuotePaychex’s Q3 ExpectationsThe consensus estimate for Paychex’s third-quarter fiscal 2025 revenues is pegged at $1.5 billion, indicating a 4.8% increase from the year-ago quarter’s reported figure. Higher client wins across segments are anticipated to have benefited the top line.We expect PEO and insurance solution revenues of $372.6 million, a 7.8% rise from the year-ago quarter’s reported figure. The rally is likely to have been driven by an increase in worksite employees, fuelled by a strong sales performance, high retention levels and improved overall insurance enrolment.Our estimate for revenues from Management Solutions is pegged at $1.1 billion, indicating a 4.5% rise on a year-over-year basis. Growth in clients across PAYX’s suite of HCM solutions, client employees for HR solutions and higher product penetration are anticipated to have improved this segment’s revenues.Interest on funds held for clients is anticipated to be $38.4 million, implying a 12.5% decline from the year-ago quarter’s actual.The Zacks Consensus Estimate for earnings is pegged at $1.48 per share, implying a 7.3% increase from the year-ago quarter’s reported figure. Top-line growth and strong margins are expected to have boosted the bottom line.What Our Model Says About PAYXOur model predicts an earnings beat for Paychex 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 are reported with our Earnings ESP Filter.PAYX has an Earnings ESP of +0.83% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Earnings Snapshot of Other PlayersGartner, Inc. IT reported 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.Broadridge Financial Solutions, Inc. BR posted impressive second-quarter fiscal 2025 results.BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and increased 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report Paychex, Inc. (PAYX): Free Stock Analysis Report Gartner, Inc. (IT): 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