Paychex Earnings: Here’s Why Investors Don’t Like These Results

Paychex Inc. (NASDAQ:PAYX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.75%.

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Paychex Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.11% to $0.4 in the quarter versus EPS of $0.37 in the year-earlier quarter.

Revenue: Rose 4.18% to $593.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Paychex Inc. reported adjusted EPS income of $0.4 per share. By that measure, the company beat the mean analyst estimate of $0.39. It beat the average revenue estimate of $592.62 million.

Quoting Management: There was no comment from the management.

Key Stats (on next page)…

Revenue increased 4.2% from $569.4 million in the previous quarter. EPS decreased 2.44% from $0.41 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.37 and has not changed. For the current year, the average estimate is a profit of $1.6, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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