Paychex (NASDAQ:PAYX) Updates FY25 Earnings Guidance

Paychex (NASDAQ:PAYX) updated its FY25 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of $4.96-5.05 for the period, compared to the consensus estimate of $4.99. The company issued revenue guidance of $5.49-5.57 billion, compared to the consensus revenue estimate of $5.52 billion. Paychex also updated its FY 2025 guidance to 4.960-5.050 EPS.

Analyst Upgrades and Downgrades

Several brokerages have commented on PAYX. Royal Bank of Canada reiterated a “sector perform” rating and issued a $148.00 price target on shares of Paychex in a research note on Friday, December 20th. UBS Group lifted their price target on shares of Paychex from $152.00 to $155.00 and gave the stock a “neutral” rating in a research note on Tuesday, March 4th. Finally, Barclays upped their price objective on shares of Paychex from $135.00 to $140.00 and gave the company an “equal weight” rating in a research note on Monday, December 23rd. Two analysts have rated the stock with a sell rating and ten have issued a hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $134.50.

Paychex Stock Performance

NASDAQ PAYX opened at $150.19 on Thursday. The firm has a market cap of $54.08 billion, a P/E ratio of 31.62, a P/E/G ratio of 4.10 and a beta of 0.98. Paychex has a 52-week low of $114.72 and a 52-week high of $158.37. The business’s 50-day moving average price is $148.03 and its 200 day moving average price is $143.04. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 0.20.

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

Paychex Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, February 27th. Shareholders of record on Friday, February 7th were paid a $0.98 dividend. The ex-dividend date was Friday, February 7th. This represents a $3.92 annualized dividend and a yield of 2.61%. Paychex’s dividend payout ratio is currently 82.53%.

Institutional Trading of Paychex

A hedge fund recently raised its stake in Paychex stock. Brighton Jones LLC boosted its position in Paychex, Inc. (NASDAQ:PAYX) by 26.3% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm 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. Institutional investors and hedge funds 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.