Paychex (NASDAQ:PAYX) Releases FY25 Earnings Guidance

Paychex (NASDAQ:PAYX) issued an update on its FY25 earnings guidance on Wednesday morning. 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.

Paychex Stock Performance

Shares of PAYX opened at $150.19 on Thursday. The company has a market capitalization of $54.08 billion, a PE 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 company has a 50-day simple moving average of $148.03 and a 200-day simple moving average of $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 posted its quarterly earnings results 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 company had revenue of $1.51 billion during 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 revenue for the quarter was up 4.8% on a year-over-year basis. During the same period last year, the firm earned $1.38 EPS. Equities research analysts predict that Paychex will post 4.99 earnings per share for the current fiscal year.

Paychex Dividend Announcement

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 $0.98 dividend. This represents a $3.92 annualized dividend and a yield of 2.61%. The ex-dividend date of this dividend was Friday, February 7th. Paychex’s dividend payout ratio (DPR) is 82.53%.

Analysts Set New Price Targets

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

Institutional Inflows and Outflows

An institutional investor recently raised its position in Paychex stock. Brighton Jones LLC raised its position in shares of 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 and Exchange Commission. The firm owned 5,710 shares of the business services provider’s stock after acquiring an additional 1,190 shares during the period. Brighton Jones LLC’s holdings in Paychex were worth $801,000 at the end of the most recent reporting period. 83.47% of the stock is currently owned by institutional investors.

About Paychex

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.