Payroll and human resources software provider, Paychex (NASDAQ:PAYX) will be announcing earnings results tomorrow before the bell. Here's what you need to know.
Last quarter Paychex reported revenues of $1.23 billion, up 7.45% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a decline in its gross margin. Guidance was the bright spot in the quarter, as the company's outlook for fiscal 2024 revenue (6-7% year on year growth) and operating profit (41-42% margin) were slightly ahead of expectations.
Is Paychex buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Paychex's revenue to grow 5.88% year on year to $1.28 billion, slowing down from the 11.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.12 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.02%.
With Paychex being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for finance and HR software stocks, but the whole sector has been facing a sell-off since late last year, with stocks down on average 3.56% over the last month. Paychex is down 6.71% during the same time, and is heading into the earnings with with analysts' average price target of $120.72, compared to share price of $114.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
The author has no position in any of the stocks mentioned.
