Paychex (NASDAQ:PAYX) Releases FY 2025 Earnings Guidance

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

A number of equities research analysts have recently weighed in on the stock. Robert W. Baird dropped their price target on shares of Paychex from $126.00 to $124.00 and set a neutral rating for the company in a research report on Thursday. Bank of America lifted their price target on shares of Paychex from $111.00 to $113.00 and gave the company an underperform rating in a research report on Thursday. Evercore ISI reiterated an in-line rating and issued a $118.00 price target on shares of Paychex in a research report on Tuesday, March 26th. Wedbush reissued a neutral rating and issued a $115.00 price objective on shares of Paychex in a research note on Wednesday, April 3rd. Finally, TD Cowen decreased their price objective on shares of Paychex from $122.00 to $121.00 and set a hold rating on the stock in a research note on Wednesday, April 3rd. Two research analysts have rated the stock with a sell rating and eleven have assigned a hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of Hold and a consensus price target of $123.00.

Paychex Stock Performance

NASDAQ PAYX opened at $117.39 on Thursday. Paychex has a 1 year low of $106.27 and a 1 year high of $129.70. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.24 and a quick ratio of 1.24. The stock has a market capitalization of $42.26 billion, a PE ratio of 25.58, a P/E/G ratio of 3.47 and a beta of 0.96. The company’s 50 day simple moving average is $122.43 and its two-hundred day simple moving average is $122.09.

Paychex (NASDAQ:PAYX) last posted its 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 business had revenue of $1.30 billion for 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 business’s revenue for the quarter was up 5.3% compared to the same quarter last year. Analysts predict that Paychex will post 4.71 earnings per share for the current fiscal 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 issued a $0.98 dividend. This is a positive change from Paychex’s previous quarterly dividend of $0.89. The ex-dividend date of this dividend was Thursday, May 9th. This represents a $3.92 dividend on an annualized basis and a dividend yield of 3.34%. Paychex’s dividend payout ratio is presently 85.40%.

Insider Transactions at Paychex

In other news, Director David J. S. Flaschen sold 19,709 shares of the 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 transaction, the director now owns 5,383 shares of the company’s stock, valued at approximately $670,452.65. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Insiders own 11.50% of the company’s stock.

About Paychex

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.