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 4.970. The company issued revenue guidance of $5.5 billion-$5.6 billion, compared to the consensus revenue estimate of $5.6 billion. Paychex also updated its FY25 guidance to $4.96-5.05 EPS.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on PAYX. Evercore ISI reiterated an in-line rating and issued a $118.00 price target on shares of Paychex in a report on Tuesday, March 26th. Royal Bank of Canada reaffirmed a sector perform rating and issued a $130.00 target price on shares of Paychex in a report on Tuesday, May 21st. Wedbush reissued a neutral rating and set a $115.00 price target on shares of Paychex in a research note on Wednesday, April 3rd. Bank of America raised their price objective on Paychex from $108.00 to $111.00 and gave the company an underperform rating in a research note on Wednesday, April 3rd. Finally, TD Cowen lowered 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. Two analysts have rated the stock with a sell rating and ten have given a hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of Hold and a consensus price target of $123.00.

Paychex Stock Down 5.5 %

Shares of NASDAQ:PAYX traded down $6.92 during mid-day trading on Wednesday, hitting $118.11. 1,921,131 shares of the company traded hands, compared to its average volume of 1,783,349. The firm’s 50 day simple moving average is $122.43 and its 200 day simple moving average is $122.09. The firm has a market cap of $42.51 billion, a P/E ratio of 25.87, a PEG ratio of 3.47 and a beta of 0.96. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.24 and a current ratio of 1.24. Paychex has a 52-week low of $106.27 and a 52-week high of $129.70.

Paychex (NASDAQ:PAYX) last released its quarterly earnings results on Wednesday, June 26th. The business services provider reported $1.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.10 by $0.02. Paychex had a net margin of 31.86% and a return on equity of 46.14%. The firm had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter in the previous year, the firm posted $0.97 EPS. The firm’s quarterly revenue was up 5.3% on a year-over-year basis. On average, equities analysts anticipate that Paychex will post 4.71 EPS for the current year.

Paychex Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, May 30th. Stockholders of record on Friday, May 10th were given a dividend of $0.98 per share. This is a boost from Paychex’s previous quarterly dividend of $0.89. The ex-dividend date was Thursday, May 9th. This represents a $3.92 annualized dividend and a dividend yield of 3.32%. Paychex’s dividend payout ratio (DPR) is presently 85.40%.

Insider Transactions at Paychex

In related news, Director David J. S. Flaschen sold 19,709 shares of the stock in a transaction dated Friday, May 24th. The shares were sold at an average price of $124.55, for a total transaction of $2,454,755.95. Following the sale, the director now owns 5,383 shares in the company, valued at $670,452.65. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 11.50% of the company’s stock.

Paychex Company Profile

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.