Paychex Q4 Earnings & Revenues Surpass Estimates, Increase Y/Y

Paychex, Inc. PAYX has reported impressive fourth-quarter fiscal 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.PAYX’s fiscal fourth-quarter earnings of $1.19 per share beat the Zacks Consensus Estimate by a slight margin and increased 6.3% from the year-ago quarter. Total revenues of $1.4 billion surpassed the consensus estimate by a slight margin and gained 10% from the year-ago quarter.The company’s shares have risen 33.4% in a year compared with the 35.2% and 11% rallies of the industry and the Zacks S&P 500 composite, respectively.Paychex, Inc. Price, Consensus and EPS Surprise  Paychex, Inc. price-consensus-eps-surprise-chart | Paychex, Inc. QuotePAYX’s Quarterly PerformanceRevenues from the Management Solutions segment increased 12% year over year to $1 billion, beating our estimate of $979 million. Paycor's buyout and higher revenues per client, resulting from price realization and product penetration, facilitated this growth.Professional employer organization (“PEO”) and Insurance Solutions’ revenues were $340.3 million, up 4% from the year-ago quarter. The figure met our estimate. Growth in the number of average PEO worksite employees and a surge in PEO insurance revenues contributed to this segment’s growth.Service revenues gained 10% year over year to $1.4 billion, exceeding our projection of $1.3 billion. Interest on funds held for clients rose 18% from the year-ago quarter to $45.2 million, surpassing our estimation of $37.4 million.EBITDA of $518.2 million dropped 1% from the year-ago quarter, missing our estimate of $657.9 million. Operating income decreased 11% year over year to $431.1 million, missing our projection of $615.4 million. The operating margin was 30.2%, down 700 basis points from the year-ago quarter. The reported figure beat our estimate of 43.5%.Balance Sheet & Cash Flow of PaychexThe company exited the fourth quarter of fiscal 2025 with cash and cash equivalents of $1.6 billion, flat with the preceding quarter. The long-term debt totaled $4.5 billion compared with $799 million in the third quarter of fiscal 2025.Cash generated from operating activities amounted to $394 million, while the capital expenditure totaled $60.5 million.PAYX’S FY25 GuidancePaychex expects revenues to grow 16.5-18.5%. The management raised its expectation for interest on funds held for clients to $190-$200 million compared with the preceding quarter’s view of $145-$155 million.The company carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings SnapshotsFiserv, Inc. FI registered mixed first-quarter 2025 results.FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but gained 5.5% on a year-over-year basis.FactSet FDS reported the results for the third quarter of fiscal 2025.FDS’s earnings per share of $4.27 missed the consensus mark by a slight margin and decreased 2.3% from the year-ago quarter. Revenues of $585.5 million beat the Zacks Consensus Estimate by a slight margin and gained 5.9% from the year-ago quarter.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 Paychex, Inc. (PAYX): Free Stock Analysis Report FactSet Research Systems Inc. (FDS): Free Stock Analysis Report Fiserv, Inc. (FI): 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