Paychex (NASDAQ:PAYX) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Paychex (NASDAQ:PAYX) announced its quarterly earnings data on Wednesday. The business services provider reported $1.12 EPS for the quarter, topping the consensus estimate of $1.10 by $0.02, Briefing.com reports. The company had revenue of $1.30 billion during the quarter, compared to the consensus estimate of $1.29 billion. Paychex had a net margin of 32.03% and a return on equity of 46.63%. The company’s quarterly revenue was up 5.3% on a year-over-year basis. During the same quarter last year, the firm posted $0.97 EPS. Paychex updated its FY25 guidance to $4.96-5.05 EPS and its FY 2025 guidance to 4.960-5.050 EPS.

Paychex Stock Up 0.4 %

Shares of NASDAQ PAYX opened at $117.84 on Friday. Paychex has a 12 month low of $106.27 and a 12 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. The firm has a market capitalization of $42.42 billion, a price-to-earnings ratio of 25.23, a PEG ratio of 3.24 and a beta of 0.96. The business has a 50-day moving average of $122.40 and a 200-day moving average of $122.06.

Paychex Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 30th. Stockholders of record on Friday, May 10th were issued a dividend of $0.98 per share. This is a positive change from Paychex’s previous quarterly dividend of $0.89. The ex-dividend date was Thursday, May 9th. This represents a $3.92 annualized dividend and a dividend yield of 3.33%. Paychex’s payout ratio is presently 83.94%.

Insider Transactions at Paychex

In other news, Director David J. S. Flaschen sold 19,709 shares of the business’s stock in a transaction dated Friday, May 24th. The stock was sold at an average price of $124.55, for a total transaction of $2,454,755.95. Following the completion of the transaction, the director now owns 5,383 shares of the company’s stock, valued at $670,452.65. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 11.50% of the stock is owned by insiders.

Analyst Ratings Changes

Several analysts recently issued reports on PAYX shares. Evercore ISI reissued an “in-line” rating and issued a $118.00 price target on shares of Paychex in a research report on Tuesday, March 26th. Morgan Stanley dropped their price objective on Paychex from $125.00 to $122.00 and set an “equal weight” rating on the stock in a research note on Thursday. Wedbush reiterated a “neutral” rating and set a $115.00 target price on shares of Paychex in a research note on Wednesday, April 3rd. Royal Bank of Canada reiterated a “sector perform” rating and set a $130.00 target price on shares of Paychex in a research note on Thursday. Finally, TD Cowen lowered their target price on Paychex from $122.00 to $121.00 and set a “hold” rating on the stock in a research note on Wednesday, April 3rd. Two equities research analysts have rated the stock with a sell rating and eleven have issued a hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $122.62.

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.