PAYX Earnings Prediction
The chart below shows how PAYX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PAYX sees a +1.54% change in stock price 10 days leading up to the earnings, and a +0.39% change 10 days following the report. On the earnings day itself, the stock moves by +0.35%. This data can give you a slight idea of what to expect for the next quarter's release.
PAYX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.32B
4.69%
-0.12%
Gross Margin
86.90%
--
--
Operating Margin
40.86%
1.54%
-1.45%
Net Margin
31.39%
0.54%
-3.18%
EPS
1.14
5.56%
-3.39%
No Data Available
PAYX Earnings Analysis
Paychex Inc Corporation (PAYX.O) Earnings Conference Call
Positive
Quarterly Revenue Increase: Total revenue for the quarter increased 5% to $1.3 billion, with revenue growth of 7% excluding the impact of the expiration of the ERTC program.
HCM Solutions Revenue Growth: Management Solutions revenue increased 3% to $963 million, driven by growth in the number of clients served across HCM solutions.
PEO Revenue Increase: PEO and Insurance Solutions revenue increased 7% to $318 million, primarily driven by higher average works site employees and an increase in PEO insurance revenues.
Operating Income Increase: Operating income grew 6% to $538 million with an operating margin of 40.9%, which was up year-over-year approximately 60 basis points.
Earnings Per Share Increase: Diluted earnings per share increased 6% to $1.14 in the second quarter, reflecting the company's continued operational efficiency and value proposition enhancements.
Negative
Quarterly Revenue Increase: Total revenue for the quarter increased 5% to $1.3 billion, which includes the headwind from the expiration of the ERTC program of approximately 200 basis points.
Expense Increase Analysis: Total expenses increased 4% to $779 million, due to higher PEO direct generated costs related to growth in our average work site employees and PEO insurance revenues.
Earnings Per Share Increase: Diluted earnings per share and adjusted diluted earnings per share both increased 6% to $1.14 in the second quarter.
Revenue Growth Analysis: Total revenue grew 4% to $2.6 billion, which includes approximately 300 basis points of headwinds from ERTC as well as having one fewer processing days in the first quarter.
Operating Income Increase: Operating income grew 6% to $538 million with an operating margin of 40.9%, which was up year-over-year approximately 60 basis points.
PAYX FAQs
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PAYX Earning Call Sentiment
Paychex, Inc. (PAYX) Q2 2025 Earnings Call Transcript
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PAYX.O
1.32%Positive
The earnings call summary indicates a positive sentiment with strong financial performance, including a 6% increase in operating income and diluted EPS. The Q&A section reveals optimism in business growth, particularly in the PEO sector, and solid retention rates. However, management's lack of clarity on healthcare inflation impacts introduces some uncertainty. Despite this, the overall positive financial metrics, strategic growth in product penetration, and optimistic guidance suggest a positive stock price movement of 2% to 8% over the next two weeks.