Paychex (PAYX, $136.89) beats Q3 earnings expectations
Paychex posted its third quarter earnings and revenue, both of which surpassed analysts' expectations.
The human resource/payroll company’s earnings came in at $1.15 a share, well above the $1.05 a share expected by analysts polled by Investing.com.
Revenue of $1.28 billion also beat expectations of $1.22 billion.
Paychex revenues from its Management Solutions segment increased +13% from the year-ago quarter to $959.9 million. Professional employer organization (“PEO”) and Insurance Solutions revenues were up +21% from the year-ago quarter to $301.7 million.
For fiscal year 2022, total revenues are now expected to register 12-13% growth compared with the prior expectation of 10-11%. Adjusted earnings per share are now expected to register 22.5-23% growth compared with the prior expectation of 18-20%.
Growth in management Solutions revenues are now expected to be in the range of 12-13% compared with the prior forecast of 10-11%. PEO and Insurance Solutions revenues are now expected to grow 13-14% compared with the previous outlook of 10-12%.
Adjusted operating margin is expected to be almost 40% compared vs. prior expectation of 39-40%. Adjusted EBITDA margin is now expected to be nearly 44-45% compared with the prior expectation of 44%.
PAYX's RSI Oscillator ascending out of oversold territory
The RSI Oscillator for PAYX moved out of oversold territory on December 19, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 25 similar instances when the indicator left oversold territory. In of the 25 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 52 cases where PAYX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PAYX advanced for three days, in of 340 cases, the price rose further within the following month. The odds of a continued upward trend are .
PAYX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 06, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on PAYX as a result. In of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
PAYX moved below its 50-day moving average on December 11, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for PAYX crossed bearishly below the 50-day moving average on December 16, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PAYX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for PAYX entered a downward trend on December 19, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
