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Paychex (PAYX) Q3 Earnings Report Preview: What To Look For

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Human capital management company Paychex (NASDAQ: PAYX) will be reporting earnings this Wednesday before market hours. Here’s what to expect.

Paychex met analysts’ revenue expectations last quarter, reporting revenues of $1.61 billion, up 12.5% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ adjusted operating income estimates.

Is Paychex a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Paychex’s revenue to grow 5.7% year on year, slowing from the 16.8% increase it recorded in the same quarter last year.

Paychex Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Paychex has missed Wall Street’s revenue estimates multiple times over the last two years.

With Paychex being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unfold for finance and hr software stocks. However, there has been positive investor sentiment in the segment, with share prices up 2.4% on average over the last month. Paychex is down 8.8% during the same time .

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