Paychex, Inc. (NASDAQ: PAYX ) just reported its Q1 earnings, so I thought I'd take a look at the numbers and give some comments on the outlook and where I stand. The quarter didn't cause me to change my stance on MSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time. Analy ...

Revenue and Income - Total revenue for the first quarter increased to $1.3 billion, reflecting a 3% increase compared to the prior year period[75]. - Management Solutions revenue was $961.7 million, an increase of 1%, driven by growth in the number of clients and higher product penetration[75]. - PEO and Insurance Solutions revenue reached $319.3 million, reflecting a 7% increase due to growth in average PEO worksite employees[76]. - Total service revenue was $1,281.0 million, a 2% increase from the prior year[73]. - Net income for the first quarter was $427.4 million, a 2% increase compared to $419.2 million in the prior year[74]. - Diluted earnings per share increased to $1.18, reflecting a 2% growth from $1.16 in the prior year[74]. - Adjusted net income increased by 1% to $421.2 million, with adjusted diluted earnings per share rising by 2% to $1.16[80]. Expenses and Tax - Total expenses increased by 3% to $771.8 million for the first quarter compared to the prior year period, driven by an 18% increase in PEO direct insurance costs to $130.3 million and a 6% increase in other expenses to $151.2 million[78]. - The effective income tax rate was 23.3% for the first quarter, compared to 23.7% in the prior year[74]. - The effective income tax rate was 23.3% for the first quarter, a slight decrease from 23.7% in the prior year[80]. Cash Flow and Investments - Net cash provided by operating activities decreased to $546.1 million for the three months ended August 31, 2024, down from $693.0 million in the prior year, a change of $146.9 million[94]. - Net cash used in investing activities was $(110.0) million for the current period, compared to $(13.2) million in the prior year, reflecting a change of $(96.8) million[94]. - Net cash used in financing activities was $(485.0) million, a significant decrease from $1,069.4 million in the prior year, resulting in a change of $(1,554.4) million[94]. - Cash, restricted cash, and total corporate investments amounted to $1.6 billion as of August 31, 2024, with short-term borrowings of $18.9 million and long-term borrowings of $800.0 million[82]. - The company anticipates that its cash flows and available financing will support ongoing operations, capital purchases, and dividend payments for the foreseeable future[82]. Stock and Dividends - Dividends paid to stockholders increased by 10% to $353.4 million[73]. - Cash dividends per common share increased to $0.98 from $0.89 year-over-year[94]. - The company maintains a stock repurchase program with authorization to buy back up to $400.0 million of its common stock, expiring on May 31, 2027[114]. - During the first quarter, the company repurchased a total of 0.8 million shares at an average price of $125.50 per share, totaling approximately $104.0 million[115]. - The total dollar value that may yet be repurchased under the stock repurchase program is approximately $296.0 million[115]. Investment Portfolio - The average interest rate earned on combined funds held for clients and corporate cash equivalents was 3.9% compared to 3.7% for the prior year period[102]. - As of August 31, 2024, the total investment portfolio is expected to average approximately $6.2 billion for the year ending May 31, 2025, with 45% in short-term securities and VRDNs[105]. - The net unrealized losses on the investment portfolio were $80.4 million as of August 31, 2024, down from $162.5 million as of May 31, 2024[106]. - The weighted-average yield-to-maturity for AFS securities was 3.1% as of August 31, 2024, compared to 3.0% as of May 31, 2024[107]. - The company had $3.4 billion invested in AFS securities at fair value as of August 31, 2024[107]. - A hypothetical decrease in longer-term interest rates of 25 basis points could increase the fair value of the AFS securities portfolio by approximately $20.0 million to $25.0 million[107]. Corporate Governance and Controls - As of August 31, 2024, the company's disclosure controls and procedures were deemed effective at a reasonable assurance level[113]. - There have been no material changes in the company's critical accounting policies and estimates as of the latest reporting period[111]. - The company reported no changes in its internal control over financial reporting that materially affected its operations during the fiscal quarter ended August 31, 2024[114]. - The company evaluates critical accounting policies related to revenue recognition, insurance reserves, and stock-based compensation costs among others[111]. - The company has adopted and issued new accounting pronouncements, details of which can be found in the Notes to Consolidated Financial Statements[112]. - The company has a program to manage common stock dilution through its stock repurchase initiative[114]. - The company continues to assess market risk factors as part of its financial condition and results of operations[112].

Paychex, Inc. (NASDAQ:PAYX) Q1 2025 Earnings Conference Call October 1, 2024 9:30 AM ET Company Participants Bob Schrader - Chief Financial Officer John Gibson - President and Chief Executive Officer Conference Call Participants Mark Marcon - Baird Peter Christiansen - Citigroup Kevin McVeigh - UBS Bryan Bergin - TD Cowen Tien-Tsin Huang - JPMorgan Samad Samana - Jefferies Andrew Nicholas - William Blair David Paige - RBC Nate Svensson - Deutsche Bank Kartik Mehta - Northcoast Research Jason Kupferberg - Bo ...

Paychex, Inc. (PAYX) has reported impressive first-quarter fiscal 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate. See Zacks Earnings Calendar to stay ahead of market-making news. PAYX's earnings of $1.2 per share beat the Zacks Consensus Estimate by 1.8% and increased 1.8% from the year-ago quarter. Total revenues of $1.3 billion outpaced the consensus estimate by a slight margin and gained 2.5% from the year-ago quarter. The company's shares have gained 11.7% in the past six ...

Paychex (PAYX) reported $1.32 billion in revenue for the quarter ended August 2024, representing a year-overyear increase of 2.5%. EPS of $1.16 for the same period compares to $1.14 a year ago. The reported revenue represents a surprise of +0.31% over the Zacks Consensus Estimate of $1.31 billion. With the consensus EPS estimate being $1.14, the EPS surprise was +1.75%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street exp ...

Paychex (PAYX) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $1.14 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 1.75%. A quarter ago, it was expected that this payroll processor and human-resources services provider would post earnings of $1.10 per share when it actually produced earnings of $1.12, delivering a surprise of 1.82%. Ov ...

First Quarter Highlights and Financial Results Fiscal 2025 Forward Looking Statements Certain written statements in this presentation may contain, and members of management may from time to time make or discuss statements which constitute, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, all matters that are not historical facts. Forward-looking statements are no ...

PRESS RELEASE OF PAYCHEX, INC. DATED OCTOBER 01, 2024 1 11 Panorama Trail South · Rochester, NY 14625 · paychex.com Paychex, Inc. Reports Solid First Quarter Results • Sustained Growth in Revenue and Earnings • Returned $457 Million to Stockholders Through Dividends and Share Repurchases • Launched Several New Digital Solutions Designed to Help Businesses Succeed Rochester, N.Y. - (October 01, 2024) - Paychex, Inc. (the "Company," "Paychex," "we," "our," or "us") today reported results for the fiscal quarte ...

Paychex, Inc. PAYX will release earnings results for its first quarter, before the opening bell on Tuesday, Oct. 1. Analysts expect the Rochester, New York-based company to report quarterly earnings at $1.14 per share, compared to $1.14 per share in the year-ago period. Paychex is projected to post quarterly revenue of $1.32 billion, versus $1.29 billion a year earlier, according to data from Benzinga Pro. On June 26, the company reported sales growth of 5% year over year to $1.295 billion, in-line with the ...

Paychex, Inc. (PAYX) will release its first-quarter fiscal 2025 results on Oct. 1, before market open. See Zacks Earnings Calendar to stay ahead of market-making news. PAYX has delivered a decent earnings surprise in the trailing four quarters. The figure outpaced the Zacks Consensus Estimate at the same time, delivering an earnings surprise of 1.5%, on average. Paychex's First-Quarter Expectations The consensus estimates for Paychex's first-quarter fiscal 2025 revenues are pegged at $1.3 billion, indicatin ...