Paychex (NASDAQ:PAYX) Issues FY 2025 Earnings Guidance

Paychex (NASDAQ:PAYX) issued an update on its FY 2025 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 4.960-5.050 for the period, compared to the consensus 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 research analysts have issued reports on the company. Barclays increased their price target on Paychex from $135.00 to $140.00 and gave the stock an “equal weight” rating in a report on Monday, December 23rd. UBS Group upped their price target on shares of Paychex from $152.00 to $155.00 and gave the company a “neutral” rating in a report on Tuesday, March 4th. Morgan Stanley boosted their target price on Paychex from $137.00 to $142.00 and gave the company an “equal weight” rating in a research note on Thursday. Stifel Nicolaus raised their price target on shares of Paychex from $141.00 to $156.00 and gave the stock a “hold” rating in a research note on Thursday. Finally, Citigroup increased their target price on shares of Paychex from $145.00 to $158.00 and gave the stock a “neutral” rating in a report on Thursday. Two research analysts have rated the stock with a sell rating and ten have assigned a hold rating to the company’s stock. Based on data from MarketBeat.com, Paychex currently has a consensus rating of “Hold” and a consensus price target of $137.58.

Paychex Stock Up 1.1 %

Shares of NASDAQ PAYX opened at $151.83 on Friday. The company has a market cap of $54.67 billion, a price-to-earnings ratio of 31.96, a PEG ratio of 4.10 and a beta of 0.98. The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 0.20. The stock has a 50-day moving average price of $148.13 and a two-hundred day moving average price of $143.10. Paychex has a 12 month low of $114.72 and a 12 month high of $158.37.

Paychex (NASDAQ:PAYX) last announced its quarterly earnings results on Wednesday, March 26th. The business services provider reported $1.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.01. Paychex had a net margin of 32.02% and a return on equity of 45.28%. The company had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.51 billion. During the same period in the prior year, the business earned $1.38 earnings per share. The company’s revenue for the quarter was up 4.8% compared to the same quarter last year. As a group, analysts forecast that Paychex will post 4.99 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, February 27th. Investors of record on Friday, February 7th were issued a $0.98 dividend. The ex-dividend date of this dividend was Friday, February 7th. This represents a $3.92 dividend on an annualized basis and a yield of 2.58%. Paychex’s dividend payout ratio (DPR) is presently 81.67%.

Hedge Funds Weigh In On Paychex

A hedge fund recently raised its stake in Paychex stock. Brighton Jones LLC boosted its holdings in Paychex, Inc. (NASDAQ:PAYX) by 26.3% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. 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 at the end of the most recent quarter. 83.47% of the stock is 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.