Payroll and human resources software provider, Paychex (NASDAQ:PAYX) will be reporting results tomorrow before market open. Here's what you need to know.
Paychex missed analysts' revenue expectations by 1.2% last quarter, reporting revenues of $1.44 billion, up 4.2% year on year. It was a weak quarter for the company: Revenue unfortunately missed analysts' expectations, although EPS beat. With regards to the full year, revenue guidance missed expectations.
Is Paychex a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Paychex's revenue to grow 5.2% year on year to $1.29 billion, slowing from the 7.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.10 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Paychex has missed Wall Street's revenue estimates twice 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 unravel for finance and HR software stocks.
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