Paychex (NASDAQ:PAYX) Releases FY 2025 Earnings Guidance

Paychex (NASDAQ:PAYX) issued an update on its FY 2025 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 4.960-5.050 for the period, compared to the consensus estimate of 4.970. The company issued revenue guidance of $5.5 billion-$5.6 billion, compared to the consensus revenue estimate of $5.5 billion. Paychex also updated its FY25 guidance to $4.96-5.05 EPS.

Paychex Trading Down 0.0 %

Shares of PAYX stock opened at $140.76 on Thursday. Paychex has a 1 year low of $106.27 and a 1 year high of $142.04. The firm’s fifty day simple moving average is $129.88 and its 200 day simple moving average is $124.60. The firm has a market capitalization of $50.64 billion, a P/E ratio of 30.14, a price-to-earnings-growth ratio of 3.52 and a beta of 1.00. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 0.21.

Paychex (NASDAQ:PAYX) last announced its earnings results on Tuesday, October 1st. The business services provider reported $1.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.14 by $0.02. Paychex had a net margin of 32.03% and a return on equity of 46.63%. The business had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.31 billion. During the same quarter in the previous year, the firm posted $1.14 earnings per share. Paychex’s revenue was up 2.5% compared to the same quarter last year. As a group, sell-side analysts predict that Paychex will post 4.99 EPS for the current year.

Paychex Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, August 29th. Investors of record on Thursday, August 8th were given a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a yield of 2.78%. The ex-dividend date was Thursday, August 8th. Paychex’s dividend payout ratio (DPR) is currently 83.94%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on PAYX shares. Barclays lifted their price target on shares of Paychex from $118.00 to $132.00 and gave the stock an equal weight rating in a research note on Monday, September 23rd. TD Cowen lifted their price target on shares of Paychex from $126.00 to $131.00 and gave the stock a hold rating in a research note on Wednesday. JPMorgan Chase & Co. lifted their price target on shares of Paychex from $120.00 to $128.00 and gave the stock an underweight rating in a research note on Tuesday, August 20th. Stifel Nicolaus lifted their price target on shares of Paychex from $130.00 to $141.00 and gave the stock a hold rating in a research note on Wednesday. Finally, Citigroup lifted their price target on shares of Paychex from $125.00 to $145.00 and gave the stock a neutral rating in a research note on Wednesday, September 25th. Two research analysts have rated the stock with a sell rating and twelve have issued a hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of Hold and a consensus price target of $130.71.

Insider Buying and Selling

In related news, CEO John B. Gibson sold 12,670 shares of the company’s stock in a transaction dated Monday, July 15th. The shares were sold at an average price of $119.53, for a total transaction of $1,514,445.10. Following the transaction, the chief executive officer now owns 55,745 shares in the company, valued at approximately $6,663,199.85. The sale was disclosed in a filing with the SEC, which can be accessed through this link. In related news, VP Mark Anthony Bottini sold 8,954 shares of the company’s stock in a transaction dated Wednesday, July 24th. The shares were sold at an average price of $123.60, for a total transaction of $1,106,714.40. Following the transaction, the vice president now owns 79,232 shares in the company, valued at approximately $9,793,075.20. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO John B. Gibson sold 12,670 shares of the business’s stock in a transaction dated Monday, July 15th. The stock was sold at an average price of $119.53, for a total value of $1,514,445.10. Following the sale, the chief executive officer now directly owns 55,745 shares of the company’s stock, valued at $6,663,199.85. The disclosure for this sale can be found here. Insiders have sold a total of 45,673 shares of company stock worth $5,636,085 in the last 90 days. Corporate insiders own 11.50% of the company’s stock.

Paychex Company Profile

Paychex, Inc, together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), 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.