NASDAQ$PAYX

Paychex Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Paychex's fourth quarter and fiscal year 2020 results were released, showing a decrease in revenue and earnings per share for the quarter due to the impact of COVID-19.

Paychex reported a 7% decrease in total revenue for the fourth quarter to $915.1 million, with net income decreasing by 4% to $220.7 million and diluted earnings per share decreasing by 5% to $0.61. The results were impacted by the COVID-19 pandemic, which caused business shutdowns and affected sales and financial performance.

  • Total revenue decreased 7% to $915.1 million.
  • Net income decreased 4% to $220.7 million.
  • Diluted earnings per share decreased 5% to $0.61 per share.
  • COVID-19 pandemic adversely impacted results due to business suspensions.

Headline financials

Total Revenue

$915M

Previous: $980M-6.7%
EPS (adj)

$0.61

Previous: $0.63-3.2%
Capital Expenditures

$35.1M

Previous: $35.8M-2.0%
Free Cash Flow

$353M

Previous: $213M+65.9%
Net Income

$221M

Previous: $230M-4.2%
Operating Income

$300M

Previous: $315M-4.7%
Gross Profit

$623M

Previous: $658M-5.3%
Cash & Equivalents

$905M

Previous: $674M+34.4%
Total Assets

$8.55B

Previous: $8.68B-1.4%
Stock-Based Comp

$10.9M

Previous: $12.6M-13.5%

Revenue & EPS history

Paychex · Revenue · Quarterly

$915M

Q4 2020-6.7%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Paychex · $915M total across 3 segments · Q4 2020

  • Management Solutions
    $662M-5.9%
  • PEO and Insurance Solutions
    $228M-10.7%
  • Interest on Client Funds
    $25.3M

Forward guidance

Paychex anticipates impacts resulting from the COVID-19 pandemic based on current assumptions and market conditions for the fiscal year ending May 31, 2021.

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 Q4 2020

Historical avgQ4 2020

-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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