Paychex to Report Q4 Earnings: Here's What to Expect From the Stock

Paychex, Inc. PAYX will release its fourth-quarter fiscal 2025 results on June 25, before market open.PAYX has delivered a decent earnings surprise in the trailing four quarters, with the metricoutpacing the Zacks Consensus Estimate in all quarters, delivering an earnings surprise of 1.7%, on average.Paychex, Inc. Price and EPS Surprise  Paychex, Inc. price-eps-surprise | Paychex, Inc. QuotePaychex’s Q4 ExpectationsThe consensus estimate for Paychex’s fourth-quarter fiscal 2025 revenues is $1.4 billion, indicating a 9.3% increase from that reported in the same quarter last year. The top line is expected to have improved due to segmental growth.Our estimate for revenues from Management Solutions is pegged at $979 million, indicating a 5.2% rise year-over-year. We anticipate a combination of factors benefiting this segment’s revenues. These factors include the rising number of clients served across the company’s suite of HCM solutions and client worksite employees for HR solutions, along with higher revenues per client due to price realization and product penetration.We expect PEO and insurance solution revenues to reach $340.9 million, reflecting a 4.4% increase from the same quarter last year. The rise in the average number of worksite employees and PEO insurance revenues is projected to have driven this segment.Interest on funds held for clients is anticipated to be $37.4 million, implying a 2.1% decline from the year-ago quarter’s actual. Lower average interest rates are likely to have caused the decline in interest on funds held for clients.The Zacks Consensus Estimate for earnings is pegged at $1.19 per share, implying a 6.3% increase from the year-ago quarter’s reported figure. Strong margins are expected to have benefited the bottom line.What Our Model Says About PAYXOur proven model does not conclusively predict an earnings beat for Paychex this time around. 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 is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.PAYX has an Earnings ESP of -1.27% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.Earnings Snapshot of Other PlayersVerisk VRSK reported impressive first-quarter fiscal 2025 results.VRSK’s adjusted earnings were $1.73 per share, surpassing the Zacks Consensus Estimate by 3.6% and increasing 6.1% from the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Total revenues of $753 million beat the consensus estimate marginally and increased 7% on a year-over-year basis.Accenture plc ACN posted impressive third-quarter fiscal 2025 results.ACN’s earnings were $3.49 per share, beating the Zacks Consensus Estimate by 5.8%. The metric increased 11.5% from the year-ago quarter. Total revenues of $17.7 billion beat the consensus estimate by 2.6% and rose 7.7% on a year-over-year basis.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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 Accenture PLC (ACN): Free Stock Analysis Report Paychex, Inc. (PAYX): Free Stock Analysis Report Verisk Analytics, Inc. (VRSK): 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