Paychex (NASDAQ:PAYX) Releases FY 2025 Earnings Guidance

Paychex (NASDAQ:PAYX) updated its FY 2025 earnings guidance on Wednesday. The company provided earnings per share guidance of 4.960-5.050 for the period, compared to the consensus earnings per share estimate of 4.990. 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 Price Performance

PAYX opened at $149.12 on Wednesday. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.39 and a current ratio of 1.39. The stock has a market capitalization of $53.69 billion, a PE ratio of 31.12, a price-to-earnings-growth ratio of 4.10 and a beta of 0.98. The stock’s 50 day moving average price is $147.91 and its 200-day moving average price is $142.99. Paychex has a 52-week low of $114.72 and a 52-week high of $158.37.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Wednesday, March 26th. The business services provider reported $1.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.48 by $0.01. The business had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.51 billion. Paychex had a net margin of 32.02% and a return on equity of 45.28%. The company’s quarterly revenue was up 4.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.38 EPS. On average, equities research analysts predict that Paychex will post 4.99 EPS for the current year.

Paychex Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, February 27th. Shareholders of record on Friday, February 7th were issued a dividend of $0.98 per share. The ex-dividend date of this dividend was Friday, February 7th. This represents a $3.92 dividend on an annualized basis and a dividend yield of 2.63%. Paychex’s dividend payout ratio (DPR) is 82.53%.

Wall Street Analysts Forecast Growth

PAYX has been the topic of several research reports. Barclays lifted their price target on Paychex from $135.00 to $140.00 and gave the company an “equal weight” rating in a research report on Monday, December 23rd. Royal Bank of Canada reissued a “sector perform” rating and set a $148.00 price objective on shares of Paychex in a research note on Friday, December 20th. Finally, UBS Group raised their target price on shares of Paychex from $152.00 to $155.00 and gave the company a “neutral” rating in a research note on Tuesday, March 4th. Two investment analysts have rated the stock with a sell rating and eleven have issued a hold rating to the company’s stock. Based on data from MarketBeat, Paychex has a consensus rating of “Hold” and an average target price of $133.23.

Institutional Investors Weigh In On Paychex

A hedge fund recently raised its stake in Paychex stock. Brighton Jones LLC increased its stake in shares of Paychex, Inc. (NASDAQ:PAYX) by 26.3% in the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 5,710 shares of the business services provider’s stock after purchasing an additional 1,190 shares during the period. Brighton Jones LLC’s holdings in Paychex were worth $801,000 as of its most recent filing with the Securities & Exchange Commission. Hedge funds and other institutional investors own 83.47% 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.