Paychex (PAYX) Q3 Earnings and Revenues Surpass Estimates

Core Viewpoint - Paychex reported quarterly earnings of $1.49 per share, exceeding the Zacks Consensus Estimate of $1.48 per share, and showing an increase from $1.38 per share a year ago, indicating a positive earnings surprise of 0.68% [1] Financial Performance - The company achieved revenues of $1.51 billion for the quarter ended February 2025, surpassing the Zacks Consensus Estimate by 0.03% and up from $1.44 billion year-over-year [2] - Over the last four quarters, Paychex has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance - Paychex shares have increased approximately 2.8% since the beginning of the year, contrasting with the S&P 500's decline of -1.8% [3] Future Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $1.21 on revenues of $1.37 billion, and for the current fiscal year, it is $4.99 on revenues of $5.52 billion [7] Industry Context - The Internet - Software industry, to which Paychex belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]