Entering text into the input field will update the search result below

Paychex sluggish despite Q1 estimates beat

Oct. 06, 2020 10:18 AM ETPaychex, Inc. (PAYX) StockBy: Pranav Ghumatkar, SA News Editor
  • Paychex (NASDAQ:PAYX -0.8%) reports fiscal FQ1 beats with revenue down 6% Y/Y to $932M; as the Company’s results of operations were adversely impacted as businesses continue to be affected by the COVID-19 pandemic.
  • Management Solutions revenue fell 5% to $687.4M Y/Y, and Insurance Solutions declined 7% to $229.9M.
  • Q1 overall margins: Operating declined 470 bps to 30.5%; adj. operating declined 140 bps to 33.8% and adj. EBITDA too declined 144 bps to 39.2%.
  • Interest on funds held for clients decreased 28%, primarily due to lower average investment balances, average interest rates, and realized gains.
  • During Q1, Co. paid dividends of $223.2M and repurchased 0.4M shares of common stock for a total of $28.8M.
  • Financial position remained strong with cash, restricted cash, and total corporate investments of $952.1M.
  • Also the positive cash flows have historically allowed to support the business and to pay substantial dividends to stockholders.
  • 2021 Guidance:  Total revenue to decline in the range of 2% to 4% vs. consensus of -3.65%; adj. diluted EPS to decline in the range of 6% to 8% vs. consensus of -8.24%; Management Solutions revenue to decline in the range of 1% to 3%; PEO and Insurance Solutions revenue to decline in the range of 2% to 5%; adj. operating margin of ~35% and adj. EBITDA margin of ~40%.
  • Previously: Paychex EPS beats by $0.08, beats on revenue (Oct. 06 2020)

Recommended For You

More Trending News

About PAYX Stock

SymbolLast Price% Chg
Market Cap
PE
Yield (TTM)
Rev Growth (YoY)
Prev. Close
Compare to Peers

Related Stocks

SymbolLast Price% Chg
PAYX--
Paychex, Inc.