Paychex will report third-quarter earnings Wednesday before market hours, with the market expecting revenue to grow 5.7% year on year, a slowdown from the 16.8% increase recorded in the same quarter last year. Last quarter, the human capital management company reported revenues of $1.61 billion, up 12.5% year on year, meeting analysts' revenue expectations and posting a decent beat of analysts' adjusted operating income estimates. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings, though Paychex has missed Wall Street's revenue estimates multiple times over the last two years. As the first among its peers to report earnings this season, Paychex offers no read-through from other finance and hr software stocks, but investor sentiment in the segment has been positive, with share prices up 2.4% on average over the last month while Paychex is down 8.8% during the same time.
Paychex IncPaychex is the subject of the Q3 earnings preview, with expected revenue growth slowing to 5.7% and a history of missing revenue estimates, but no actual result yet.
