Earnings Updates | Q1 2024

April 10, 2024by toleg.work

The corporate reporting period has started.

In the past week, 3 companies from the S&P 500 index reported for Q1 2024.

Today, let’s take a look at Paychex. Its revenue is $1.4B. It grew by +1.1% compared to the corresponding value for the previous quarter. Let’s analyze the company’s business in more detail.

Paychex provides payroll, insurance, and human resources management services. The company serves more than 740K customers, i.e. every 12th employee in the US uses its services. By the way, Paychex is one of the 100 largest companies traded on the NASDAQ stock exchange.

Paychex’s revenues increased by +7.6% compared to the same quarter last year and reached $1.4B due to revenue growth in the 2 largest segments of Management Solutions and Professional Employer Organization by 2% and 8%, respectively. The company also paid $2.67/share in dividends and repurchased $162M worth of its own shares.

Manufacturing costs make up 25% of the revenue structure, and gross profit is 75%. Over the past quarter, the company made a profit of $498M. Its market capitalization is $43B.

After the publication of the report, Paychex stock rose by +1.9% to reach $122 per share. In general, market participants are satisfied with the company’s current financial results and reacted positively to the forecasts for the next quarter.

*surprise – % ratio between actual and expected revenue
**growth – % ratio of the amount of revenue for the last 4 quarters compared to this value calculated for the previous quarter

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