Paychex Q1 2024 Earnings Estimates Decreased by Zacks Research

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Paychex ($NASDAQ:PAYX), Inc. is a provider of payroll and human capital management solutions to small and medium-sized businesses. In a recent research note, Zacks Research has lowered their Q1 2024 earnings per share forecasts for Paychex. This means that analysts on Wall Street are less confident about the company’s ability to generate profits in the upcoming quarter. The report by Zacks Research cited potential macroeconomic headwinds, higher operating costs, and foreign exchange rate volatility as some of the reasons for the earnings forecast reduction.

Additionally, market analysts have expressed concern about the company’s ability to meet its revenue targets in Q1 2024 due to the current economic climate. In light of these factors, Zacks Research has revised its estimates for Paychex stock and accordingly adjusted its price target. Despite the decrease in earnings estimates, Paychex remains a solid investment option for long-term investors. The company has a track record of steady growth and profitability over the years, and many analysts expect the company to remain profitable even in the face of current economic challenges. Paychex is also well-positioned to capitalize on potential growth opportunities that may arise as the economy improves. Investors should pay close attention to Paychex’s performance in Q1 2024 to see if the company can deliver on its expectations despite the recent news from Zacks Research.

Earnings

Zacks Research has recently released their Q1 2024 earnings estimates for PAYCHEX, and the results are significantly decreased from the previous reports. According to their earning report of FY2023 Q3 as of February 28 2021, PAYCHEX earned 1111.7M USD in total revenue, and earned 350.5M USD in net income. Compared to the same period of last year, there was a 12.9% decrease in total revenue, and a 18.6% decrease in net income.

However, PAYCHEX has seen positive growth in recent years. Their total revenue has increased from 1111.7M USD in FY2021 Q3 to 1381.0M USD in FY2024 Q3, indicating that the company is not in perpetual decline, and will likely continue to improve in the future.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Paychex. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Paychex. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Paychex. More…

Key Ratios Snapshot

Some of the financial key ratios for Paychex are shown below. More…

Price History

On Monday, PAYCHEX stock opened at $110.7 and closed at $111.6, up by 1.3% from prior closing price of 110.2. Despite the decrease in estimates, the stock price was still able to increase with the overall market trend for the day. It remains to be seen how the market reacts to the news moving forward, and analysts will likely be closely monitoring the stock in the coming weeks to determine whether or not it will be affected by the revised earnings estimate. Live Quote…

Analysis

GoodWhale recently conducted an analysis of PAYCHEX‘s financials and we’ve determined it to be a medium risk investment. We think PAYCHEX is worth considering for those investors looking for medium risk opportunities. In terms of financial and business aspects, our risk rating indicates that PAYCHEX is a safe bet. However, we did detect two risk warnings in their income sheet and balance sheet. If you’d like to understand more about these potential risks, please register with us to check it out. Overall, we believe that PAYCHEX is a good investing option for those looking for a medium risk opportunity. We are confident that our analysis will help you make an informed decision about your investments. More…

Peers

The competition among Paychex Inc and its competitors is fierce. Each company is trying to offer the best products and services to their clients. They are all trying to stay ahead of the curve and be the best in the business.

– Automatic Data Processing Inc ($NASDAQ:ADP)

Automatic Data Processing, Inc. (Nasdaq: ADP), a leading global provider of Human Capital Management (HCM) solutions, has a market cap of 101.65B as of 2022 and a Return on Equity of 86.78%. ADP offers a comprehensive suite of HCM solutions that helps organizations of all sizes unlock the power of their people to drive business success. From payroll and tax to talent management and benefits administration, ADP’s HCM solutions are designed to help organizations streamline HR processes, improve employee engagement and enable leaders to make better decisions.

– Trinet Group Inc ($NYSE:TNET)

Trinet Group, Inc. is a human resources outsourcing company. The Company provides a range of services, including multi-state payroll processing, human capital management, benefits administration, and compliance with regulatory and government reporting requirements. It offers a suite of online tools and services that enable clients to manage their human resources, benefits, and payroll functions. The Company serves clients in a range of industries, including healthcare, retail, hospitality, and technology.

– Allegiant Professional Business Services Inc ($OTCPK:APRO)

Allegiant Professional Business Services Inc is a provider of professional services. It has a market cap of 42.96k as of 2022. The company offers a range of services including accounting, taxation, and financial advisory. It also provides consulting services on mergers and acquisitions, and business strategy.

Summary

Paychex, Inc. has seen a drop in their estimated earnings per share for Q1 2024 according to recent Zacks Research. It is important for investors to evaluate and analyze the company’s performance and outlook to make informed decisions. Investors can review Paychex’s financial statements, compare their performance to industry benchmarks, research market trends, and analyze the company’s capital structure. Paychex’s balance sheet can provide insight into their liquidity, leverage and solvency ratios while a cash flow statement provides a look into the ability to generate cash flows.

Furthermore, investors can look at the company’s dividend policy, debt levels, and past performance to determine if the stock is undervalued or overvalued. Analyzing Paychex’s price-to-earnings ratio and other valuation metrics can provide additional information for investors. By researching and understanding the company, investors will have a better understanding of their risk-reward profile when investing in Paychex.