Wall Street analysts expect Paychex to report quarterly earnings of $1.31 per share, a 10.1% increase from the year-ago period, on revenues of $1.6 billion, up 12.3% year over year. The consensus EPS estimate has edged down 0.3% over the past 30 days. Among key metrics, Management Solutions revenue is forecast at $1.19 billion, up 14.6%, while PEO and Insurance Solutions revenue is seen at $361.45 million, up 6.2%. Total service revenue is projected at $1.55 billion, a 12.5% increase, and interest on funds held for clients is expected to reach $47.47 million, up 5%. Analysts also estimate the average interest rate earned on funds held for clients at 3.4%, down from 3.5% a year ago, and the average investment balance for those funds at $4.97 billion, compared with $5.14 billion in the prior-year quarter.
Paychex IncEarnings preview with estimates showing growth but slight downward revision in EPS consensus and lower expected interest rate on client funds.