Paychex (NASDAQ:PAYX) Issues FY25 Earnings Guidance

Paychex (NASDAQ:PAYX) issued an update on its FY25 earnings guidance on Wednesday morning. The company provided EPS guidance of $4.96-5.05 for the period, compared to the consensus EPS 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.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the company. Wedbush reiterated a neutral rating and issued a $115.00 target price on shares of Paychex in a research note on Wednesday, April 3rd. Evercore ISI reiterated an in-line rating and set a $118.00 price objective on shares of Paychex in a report on Tuesday, March 26th. Royal Bank of Canada restated a sector perform rating and issued a $130.00 target price on shares of Paychex in a report on Thursday. Morgan Stanley cut their price target on shares of Paychex from $125.00 to $122.00 and set an equal weight rating on the stock in a research note on Thursday. Finally, Bank of America boosted their price objective on shares of Paychex from $111.00 to $113.00 and gave the company an underperform rating in a research note on Thursday. Two investment analysts have rated the stock with a sell rating and eleven have assigned a hold rating to the company. According to data from MarketBeat, Paychex presently has an average rating of Hold and an average price target of $122.62.

Paychex Price Performance

Shares of PAYX stock opened at $118.56 on Friday. The firm has a fifty day simple moving average of $122.38 and a 200-day simple moving average of $121.98. The company has a market capitalization of $42.68 billion, a PE ratio of 25.39, a price-to-earnings-growth ratio of 3.07 and a beta of 0.96. Paychex has a twelve month low of $106.27 and a twelve month high of $129.70. The company has a current ratio of 1.37, a quick ratio of 1.24 and a debt-to-equity ratio of 0.21.

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

Paychex Increases Dividend

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

Insider Activity

In related news, Director David J. S. Flaschen sold 19,709 shares of the company’s stock in a transaction on 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 $670,452.65. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company 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.