In its upcoming report, Paychex (PAYX) is predicted by Wall Street analysts to post quarterly earnings of $1.48 per share, reflecting an increase of 7.3% compared to the same period last year. Revenues are forecasted to be $1.51 billion, representing a year-over-year increase of 4.8%.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

Bearing this in mind, let's now explore the average estimates of specific Paychex metrics that are commonly monitored and projected by Wall Street analysts.

The collective assessment of analysts points to an estimated 'Revenue- Management Solutions' of $1.10 billion. The estimate points to a change of +4.4% from the year-ago quarter.

The consensus estimate for 'Revenue- Interest on funds held for clients' stands at $40.82 million. The estimate suggests a change of -7% year over year.

It is projected by analysts that the 'Revenue- Total service revenue' will reach $1.47 billion. The estimate points to a change of +5.2% from the year-ago quarter.

Based on the collective assessment of analysts, 'Revenue- PEO and Insurance Services' should arrive at $371.35 million. The estimate suggests a change of +7.5% year over year.

The consensus among analysts is that 'Average investment Balance - Funds held for clients' will reach $4.98 billion. The estimate is in contrast to the year-ago figure of $4.98 billion.

Analysts' assessment points toward 'Average interest rates earned (exclusive of net realized gains) - Funds held for clients' reaching 3.4%. The estimate compares to the year-ago value of 3.5%.

According to the collective judgment of analysts, 'Average investment Balance - Corporate cash equivalents and investments' should come in at $1.50 billion. Compared to the present estimate, the company reported $1.53 billion in the same quarter last year.

The combined assessment of analysts suggests that 'Average interest rates earned (exclusive of net realized gains) - Corporate cash equivalents and investments' will likely reach 4.5%. Compared to the present estimate, the company reported 5.1% in the same quarter last year.

View all Key Company Metrics for Paychex here>>>

Over the past month, shares of Paychex have returned -1.7% versus the Zacks S&P 500 composite's -7.5% change. Currently, PAYX carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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This article originally published on Zacks Investment Research (zacks.com).

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