Paychex (PAXY) to Report Q1 Earnings: What's in the Cards?
Paychex, Inc. PAYX is scheduled to report first-quarter fiscal 2021 results on Oct 6, before market open.
Let's check out the expectations in detail.
Q1 Expectations
Paychex’s first-quarter fiscal 2021 performance is expected to have been affected by coronavirus-led lockdowns prompting firms to reshore jobs amid the lack of labor, supply-chain disruptions and workplace closures.
The Zacks Consensus Estimate for the company’s to-be-reported quarter’s revenues stands at $895.39 million, indicating a decrease of 9.7% from the year-ago reported figure. The consensus mark for total service revenues stands at $881 million, indicating a decline of 9.4% from the year-ago reported number.
The consensus estimate for interest on funds held by clients’ revenues is pegged at $14.36 million, indicating 29.9% year-over-year decline. Lower client-fund collections due to coronavirus and changes in client-base mix are likely to have weighed on segmental revenues.
The consensus mark for earnings is pegged at 56 cents per share, indicating decline of 21.1% from the year-ago quarter reported figure. Decline in operating margins is likely to have weighed on the company’s bottom line.
Notably, Paychex’s revenues and earnings decreased 7% and 3%, respectively, year over year in the fiscal fourth quarter
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Paychex this season. 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Paychex has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here
Paychex, Inc. Price and EPS Surprise
Paychex, Inc. price-eps-surprise | Paychex, Inc. Quote
Stocks to Consider
Here are a few stocks that investors may consider from the broader Zacks Business Services sector as our model shows that these have the right combination of elements to beat on earnings in their upcoming release:
CoreLogic CLGX has an Earnings ESP of +7.12% and a Zacks Rank #1.
S&P Global SPGI has an Earnings ESP of +4.98% and a Zacks Rank #2.
TransUnion TRU has an Earnings ESP of +4.75% and a Zacks Rank #2.
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