Behind The Numbers: Paychex Delivers 4% Sales Growth In Q3, Raises Eyebrows With Revised Outlook
Portfolio Pulse from Lekha Gupta
Paychex, Inc. (NASDAQ:PAYX) reported a 4% year-over-year sales growth in Q3 FY24, missing analyst estimates. Adjusted EPS of $1.38 beat estimates. The company revised its FY24 revenue growth outlook to 5%-6% from the previously forecasted 6%-7%. Paychex is focusing on investments in data, analytics, and AI. Investors can gain exposure to Paychex through USCF ETF Trust USCF Dividend Income Fund (NYSE:UDI) and SmartETFs Dividend Builder ETF (NYSE:DIVS). PAYX shares slightly declined by 0.05% to $121.56.
April 02, 2024 | 3:15 pm
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NEGATIVE IMPACT
Paychex reported a 4% Y/Y sales growth in Q3 FY24, missing estimates, but adjusted EPS beat expectations. The company revised its FY24 revenue growth outlook downwards.
The missed sales estimates and revised downward revenue outlook could negatively impact investor sentiment in the short term, leading to a potential decrease in stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
SmartETFs Dividend Builder ETF (NYSE:DIVS) offers exposure to Paychex, potentially impacting its performance based on Paychex's recent earnings report.
Given DIVS's exposure to Paychex, the ETF could see indirect effects from Paychex's earnings. The impact may be limited due to ETF diversification.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Investors can gain exposure to Paychex through USCF ETF Trust USCF Dividend Income Fund (NYSE:UDI), which may be impacted by Paychex's performance.
As UDI provides exposure to Paychex, its performance could indirectly affect UDI. However, the diversified nature of ETFs may mitigate direct impact.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50