Paychex (NASDAQ:PAYX) Releases FY25 Earnings Guidance

Paychex (NASDAQ:PAYX) issued an update on its FY25 earnings guidance on Wednesday morning. The company provided earnings per share guidance of $4.96-5.05 for the period, compared to the consensus earnings per share estimate of $4.97. The company issued revenue guidance of $5.49-5.57 billion, compared to the consensus revenue estimate of $5.54 billion. Paychex also updated its FY 2025 guidance to 4.960-5.050 EPS.

Analyst Upgrades and Downgrades

Several analysts have commented on PAYX shares. Robert W. Baird dropped their target price on shares of Paychex from $126.00 to $124.00 and set a neutral rating for the company in a research report on Thursday. Evercore ISI reissued an in-line rating and issued a $118.00 target price on shares of Paychex in a research note on Tuesday, March 26th. TD Cowen reduced their target price on Paychex from $122.00 to $121.00 and set a hold rating on the stock in a report on Wednesday, April 3rd. Royal Bank of Canada reaffirmed a sector perform rating and issued a $130.00 price target on shares of Paychex in a research note on Thursday. Finally, Wedbush reiterated a neutral rating and issued a $115.00 price target on shares of Paychex in a research report on Wednesday, April 3rd. Two research analysts have rated the stock with a sell rating and eleven have assigned a hold rating to the company’s stock. According to MarketBeat, Paychex has an average rating of Hold and an average target price of $122.62.

Paychex Trading Up 0.6 %

NASDAQ PAYX opened at $118.56 on Friday. The stock has a market capitalization of $42.68 billion, a price-to-earnings ratio of 25.39, a PEG ratio of 3.07 and a beta of 0.96. Paychex has a 52 week low of $106.27 and a 52 week high of $129.70. The stock’s 50 day moving average price is $122.38 and its two-hundred day moving average price is $121.98. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.24 and a current ratio of 1.37.

Paychex (NASDAQ:PAYX) last announced its earnings results on Wednesday, June 26th. The business services provider reported $1.12 EPS for the quarter, topping the consensus estimate of $1.10 by $0.02. Paychex had a net margin of 32.03% and a return on equity of 46.63%. The business had revenue of $1.30 billion during the quarter, compared to analysts’ expectations of $1.29 billion. During the same quarter in the prior year, the company posted $0.97 earnings per share. The firm’s revenue was up 5.3% on a year-over-year basis. As a group, analysts anticipate that Paychex will post 4.98 earnings per share for the current fiscal year.

Paychex Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, May 30th. Shareholders of record on Friday, May 10th were given a dividend of $0.98 per share. This is a positive change from Paychex’s previous quarterly dividend of $0.89. This represents a $3.92 annualized dividend and a yield of 3.31%. The ex-dividend date was Thursday, May 9th. Paychex’s dividend payout ratio is 83.94%.

Insider Activity

In other news, Director David J. S. Flaschen sold 19,709 shares of the company’s stock in a transaction dated Friday, May 24th. The shares were sold at an average price of $124.55, for a total value of $2,454,755.95. Following the sale, the director now directly owns 5,383 shares of the company’s stock, valued at approximately $670,452.65. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Insiders own 11.50% of the company’s stock.

About Paychex

Paychex, Inc provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.