Paychex (NASDAQ:PAYX) Issues FY 2025 Earnings Guidance

Paychex (NASDAQ:PAYX) updated its FY 2025 earnings guidance on Wednesday morning. The company provided EPS guidance of 4.960-5.050 for the period, compared to the consensus EPS 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.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on PAYX shares. UBS Group increased their price objective 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. Barclays raised their target price on Paychex from $135.00 to $140.00 and gave the stock an “equal weight” rating in a report on Monday, December 23rd. Finally, Royal Bank of Canada reissued a “sector perform” rating and set a $148.00 price target on shares of Paychex in a report on Friday, December 20th. Two research analysts have rated the stock with a sell rating and eleven have given a hold rating to the company’s stock. According to MarketBeat, Paychex has a consensus rating of “Hold” and an average price target of $133.23.

Paychex Stock Up 3.5 %

Shares of PAYX opened at $149.12 on Wednesday. The business’s 50 day simple moving average is $147.91 and its 200-day simple moving average is $142.99. Paychex has a 1 year low of $114.72 and a 1 year high of $158.37. The stock has a market capitalization of $53.69 billion, a price-to-earnings ratio of 31.12, a price-to-earnings-growth ratio of 4.10 and a beta of 0.98. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.39 and a quick ratio of 1.39.

Paychex (NASDAQ:PAYX) last posted its earnings results on Wednesday, March 26th. The business services provider reported $1.49 earnings per share for the quarter, topping analysts’ consensus estimates of $1.48 by $0.01. Paychex had a net margin of 32.02% and a return on equity of 45.28%. The firm had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.51 billion. During the same period in the previous year, the firm posted $1.38 EPS. The business’s quarterly revenue was up 4.8% on a year-over-year basis. As a group, equities analysts expect that Paychex will post 4.99 earnings per share for the current fiscal 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 given a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a yield of 2.63%. The ex-dividend date of this dividend was Friday, February 7th. Paychex’s dividend payout ratio (DPR) is 82.53%.

Institutional Investors Weigh In On Paychex

An institutional investor recently raised its position in Paychex stock. Brighton Jones LLC raised its position in Paychex, Inc. (NASDAQ:PAYX) by 26.3% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 5,710 shares of the business services provider’s stock after purchasing an additional 1,190 shares during the quarter. Brighton Jones LLC’s holdings in Paychex were worth $801,000 as of its most recent SEC filing. 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.