NASDAQ$PAYX
Paychex Inc · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
Paychex reported strong Q4 2023 results, marked by double-digit earnings growth and exceeding $5 billion in full-year revenue.
Paychex reported a strong fourth quarter and fiscal year, achieving over $5 billion in total revenue. Total revenue grew by 7% for the quarter and 9% for the fiscal year, driven by growth in management solutions and PEO and insurance solutions. Diluted earnings per share increased by 18% for the quarter and 12% for the fiscal year. The company's outlook for fiscal year 2024 anticipates continued growth in revenue and adjusted diluted earnings per share.
- Total revenue increased by 7% to $1.23 billion.
- Diluted earnings per share increased by 18% to $0.97.
- Management Solutions revenue increased by 7% to $905.2 million.
- PEO and Insurance Solutions revenue increased by 5% to $299.5 million.
Headline financials
Revenue & EPS history
Paychex · Revenue · Quarterly
$1.23B
Revenue by segment
Paychex · $1.23B total across 3 segments · Q4 2023
- Management Solutions$905M+7.1%73.6%
- PEO and Insurance Solutions$300M+5.3%24.4%
- Interest on Client Funds$24.9M—2.0%
Forward guidance
Paychex anticipates continued growth in revenue and adjusted diluted earnings per share for the fiscal year ending May 31, 2024.
Tailwinds
- Management Solutions revenue is anticipated to grow in the range of 5% to 6%.
- PEO and Insurance Solutions revenue is anticipated to grow in the range of 6% to 9%.
- Interest on funds held for clients is expected to be in the range of $135 million to $145 million.
- Total revenue is anticipated to grow in the range of 6% to 7%.
- Adjusted diluted earnings per share is anticipated to grow in the range of 9% to 10%.
Headwinds
- Changes in the macroeconomic environment could alter our guidance.
- Our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support.
- The possibility of cyberattacks, security vulnerabilities or Internet disruptions, including data security and privacy leaks, and data loss and business interruptions.
- Volatility in the political and economic environment, including rising inflation.
- The possible effects of negative publicity on our reputation and the value of our brand.
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 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
| Quarter | Report date | Reaction (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% | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro