NASDAQ$PAYX

Paychex Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Paychex reported double-digit growth in revenue and diluted earnings per share.

Paychex reported strong first quarter results with double-digit growth in both revenue and earnings, driven by the value proposition of their Human Capital Management (HCM) technology and Paychex HR suite. The company also raised its earnings outlook for the year.

  • Total revenue increased by 11% to $1.206 billion compared to the prior year period.
  • Management Solutions revenue increased by 12% to $905.5 million.
  • PEO and Insurance Solutions revenue increased by 8% to $282.8 million.
  • Diluted earnings per share increased by 14% to $1.05 compared to the prior year period.

Headline financials

Total Revenue

$1.21B

Previous: $1.08B+11.4%
EPS (adj)

$1.03

Previous: $0.89+15.7%
Capital Expenditures

-$30.6M

Previous: -$30.4M-0.7%
Free Cash Flow

$349M

Previous: $303M+15.0%
Net Income

$379M

Previous: $334M+13.7%
Operating Income

$496M

Previous: $443M+11.9%
Gross Profit

$855M

Previous: $770M+11.0%
Cash & Equivalents

$1.18B

Previous: $1.1B+7.5%
Total Assets

$9.13B

Previous: $9.37B-2.6%
Stock-Based Comp

$14.4M

Previous: $12.4M+16.1%

Revenue & EPS history

Paychex · Revenue · Quarterly

$1.21B

Q1 2023+11.4%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Paychex · $1.21B total across 3 segments · Q1 2023

  • Management Solutions
    $906M+12.4%
  • PEO and Insurance Solutions
    $283M+7.6%
  • Interest on Client Funds
    $17.9M+23.4%

Forward guidance

Paychex updated its guidance for the fiscal year ending May 31, 2023, anticipating adjusted diluted earnings per share to grow in the range of 11% to 12%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.6%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.1%

Avg return

30 days after

36%

26 / 72 earnings

Positive

+10.2%

Q3 2020

Best reaction

-6.3%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-0.5%+2.7%
Q2 2026-1.7%+0.3%-2.7%
Q1 2026-1.3%-3.0%-8.8%
Q4 2025-2.5%-0.6%-4.7%
Q3 2025+4.2%+7.0%-0.6%
Q2 2025+2.7%+4.1%+7.7%
Q1 2025+4.9%+3.3%+3.8%
Q4 2024-5.8%-6.4%+0.6%
Q3 2024-1.1%+0.6%-2.6%
Q2 2024-6.3%-6.0%-4.5%
Q1 2024+3.9%+0.9%-2.8%
Q4 2023+1.0%+0.7%+14.3%
Q3 2023+4.2%+2.2%+0.8%
Q2 2023+1.1%+0.3%+2.8%
Q1 2023+0.1%+1.4%+5.7%
Q4 2022-5.0%-2.9%+7.0%
Q3 2022+3.0%+5.1%-4.4%
Q2 2022+6.2%+7.3%-6.1%
Q1 2022+6.8%+8.3%+14.3%
Q4 2021+2.5%+2.9%+7.6%
Q3 2021-5.5%-4.0%+1.2%
Q2 2021-2.0%-2.4%-10.1%
Q1 2021-1.1%+1.2%+6.3%
Q4 2020-4.2%-5.8%-6.7%
Q3 2020+10.2%+8.2%+14.3%
Q2 2020-0.2%-0.4%+3.6%
Q1 2020+0.8%+1.3%+2.4%
Q4 2019-3.2%-1.5%+2.1%
Q3 2019-1.3%+1.0%+4.6%
Q2 2019+1.0%-4.2%+8.7%
Q1 2019-0.7%-1.1%-11.8%
Q4 2018-1.5%-1.4%+2.8%
Q3 2018-3.1%-0.2%-2.8%
Q2 2018-1.3%-0.5%+0.4%
Q1 2018+4.7%+6.4%+7.9%
Q4 2017-3.3%-3.6%-1.5%
Q3 2017-2.4%-3.5%-2.1%
Q2 2017-0.7%-0.3%-0.7%
Q1 2017-5.2%-4.7%-8.7%
Q4 2016+5.9%+7.0%+5.6%
Q3 2016-0.9%
Q2 2016+2.6%
Q1 2016+4.6%
Q4 2015+1.6%
Q3 2015-4.5%
Q2 2015-1.5%
Q1 2015+3.0%
Q4 2014-1.0%
Q3 2014+0.1%
Q2 2014+4.7%
Q1 2014-0.9%
Q4 2013-2.7%
Q3 2013+0.6%
Q2 2013-2.3%
Q1 2013-3.3%
Q4 2012-2.5%
Q3 2012-2.3%
Q2 2012-0.5%
Q1 2012+1.3%
Q4 2011-3.6%
Q3 2011-3.0%
Q2 2011-1.1%
Q1 2011+2.0%
Q4 2008-1.8%
Q4 2010-1.8%
Q3 2009-5.2%
Q3 2010-5.2%
Q2 2010-3.0%
Q1 2009-5.1%
Q1 2010-5.1%
Q4 2009-5.1%
Q2 2009-5.1%

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