Paychex Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Paychex, Inc. PAYX is gearing up to unveil its first-quarter earnings report before the market opens on Tuesday, Oct. 1.

Market analysts are eyeing the Rochester, New York-based company to disclose earnings of $1.14 per share for the quarter, in comparison to the $1.14 per share reported in the same period last year. The consensus among analysts is that Paychex is likely to announce quarterly revenue of $1.32 billion, up from $1.29 billion a year ago, as per data from Benzinga Pro.

In its previous earnings release on June 26, the company showcased a 5% increase in sales compared to the previous year, bringing in $1.295 billion, aligning closely with the estimated $1.296 billion as per analyst projections.

As of Friday, Paychex shares concluded trading at $132.99.

For the most recent analyst ratings on Paychex, readers can find detailed insights on the Analyst Stock Ratings page by Benzinga. The ratings can be arranged by stock ticker, company name, analyst firm, rating changes, or other criteria.

Lend an ear to how the top-notch analysts at Benzinga have evaluated the company over the recent period.

Citigroup analyst Peter Christiansen held a Neutral rating and upped the price target from $125 to $145 on Sept. 25 with an accuracy rate of 66%.
Barclays analyst Ramsey El-Assal retained an Equal-Weight rating and increased the price target from $118 to $132 on Sept. 23, boasting an accuracy rate of 68%.
TD Cowen analyst Bryan Bergin maintained a Hold rating and raised the price target from $121 to $126 on Sept. 12, possessing an accuracy rate of 61%.
JP Morgan analyst Tien-Tsin Huang upheld an Underweight rating and raised the price target from $120 to $128 on Aug. 20, with an accuracy rate of 66%.
Morgan Stanley analyst James Faucette sustained an Equal-Weight rating but revised the price target downward from $125 to $122 on June 27, holding an accuracy rate of 65%.

Understanding how income taxes are computed remains a complex puzzle for many Americans unversed in the nuances of tax laws and terminology. Terms like tax rate and tax burden can often be baffling.

A tax rate signifies the percentage at which an individual or business is levied, with considerable variations based on income levels. On the other hand, tax burden represents the total sum of taxes paid, encompassing state and local taxes. This distinction assumes a pronounced importance when contrasting the wealthiest and poorest 20% in every state.

Research Methodology Breakdown

To discern the disparities in tax burdens nationwide, GOBankingRates delved into state, federal, and local data to unravel the tax burdens of affluent and impoverished individuals for single filers and married joint filers in each state. Harnessing data from the U.S. Census Consumer Expenditure Survey and the Bureau of Labor Statistics Consumer Expenditure Survey, this comprehensive analysis employed an in-house income tax calculator to ascertain the effective and marginal tax rates on average incomes for both demographic segments in every state.

The study additionally scrutinized the annual expenditures in each state, multiplying them by the average combined sales tax to compute the total sales tax expenditure for each state. The cumulative sum expended on federal and state income taxes was added to the aggregate spent on sales tax and then divided by the average income. Notably, property tax was excluded from the analysis due to data inconsistencies.

Implications of Tax Disparity

The wealthiest 20% invariably bear a more substantial tax burden; however, despite this higher tax load, these individuals command significantly more wealth than the poorest quintile. Thus, each tax dollar exacts a heavier toll on the poorest 20%. For instance, in a scenario where a state's tax burden for single filers stands at 27.50%, this does not signify that the wealthiest 20% pay 27.50% more than the poorest quintile. Instead, it signifies that they contribute 27.50% more of their personal income compared to the poorest 20%.

State-Specific Tax Burdens for Different Income StrataAlabama Single Filing for Richest 20%: Average Annual Income of Richest 20%: $213,012 Total Taxes Paid: $69,320 Tax Burden: 32.54% Single Filing for Poorest 20%: Average Annual Income of Poorest 20%: $11,401 Total Taxes Paid: $1,252 Tax Burden: 10.98%

Difference in Tax Burden: 21.56%

Married Filing Jointly for Richest 20%: Average Annual Income of Richest 20%: $213,012 Total Taxes Paid: $57,825 Tax Burden: 27.15% Married Filing Jointly for Poorest 20%: Average Annual Income of Poorest 20%: $11,401 Total Taxes Paid: $968 Tax Burden: 8.49%

Difference in Tax Burden: 18.65%

Alaska Single Filing for Richest 20%: Average Annual Income of Richest 20%: $254,899 Total Taxes Paid: $75,761 Tax Burden: 29.72% Single Filing for Poorest 20%: Average Annual Income of Poorest 20%: $20,172 Total Taxes Paid: $2,175 Tax Burden: 10.78%

Difference in Tax Burden: 18.94%

Married Filing Jointly for Richest 20%: Average Annual Income of Richest 20%: $254,899 Total Taxes Paid: $60,828 Tax Burden: 23.86% Married Filing Jointly for Poorest 20%: Average Annual Income of Poorest 20%: $20,172 Total Taxes Paid: $1,543 Tax Burden: 7.65%

Difference in Tax Burden: 16.21%

Analysis of State Tax Burden Disparities The Great Divide: State Tax Burden Disparity Revealed

Thinking about delving into PAYX stock? Here’s a snippet of what analysts have to say: