Paychex (NASDAQ:PAYX) Updates FY25 Earnings Guidance

Paychex (NASDAQ:PAYX) issued an update on its FY25 earnings guidance on Wednesday morning. The company provided EPS guidance of $4.96-5.05 for the period, compared to the consensus EPS estimate of $4.97. The company issued revenue guidance of $5.49-5.57 billion, compared to the consensus revenue estimate of $5.54 billion. Paychex also updated its FY 2025 guidance to 4.960-5.050 EPS.

Paychex Price Performance

Shares of Paychex stock opened at $117.84 on Friday. The business has a 50 day simple moving average of $122.40 and a two-hundred day simple moving average of $122.06. Paychex has a 12 month low of $106.27 and a 12 month high of $129.70. The stock has a market capitalization of $42.42 billion, a P/E ratio of 25.23, a PEG ratio of 3.24 and a beta of 0.96. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.37 and a quick ratio of 1.24.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Wednesday, June 26th. The business services provider reported $1.12 earnings per share for the quarter, topping the consensus estimate of $1.10 by $0.02. The company had revenue of $1.30 billion during the quarter, compared to analyst estimates of $1.29 billion. Paychex had a return on equity of 46.63% and a net margin of 32.03%. The firm’s revenue for the quarter was up 5.3% compared to the same quarter last year. During the same period in the prior year, the business posted $0.97 earnings per share. As a group, analysts predict that Paychex will post 4.99 EPS for the current fiscal year.

Paychex Increases Dividend

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

Analyst Upgrades and Downgrades

PAYX has been the subject of several research analyst reports. Bank of America raised their price target on Paychex from $111.00 to $113.00 and gave the stock an underperform rating in a research report on Thursday. Evercore ISI reiterated an in-line rating and issued a $118.00 price objective on shares of Paychex in a research note on Tuesday, March 26th. Wedbush reiterated a neutral rating and issued a $115.00 price objective on shares of Paychex in a research note on Wednesday, April 3rd. Royal Bank of Canada restated a sector perform rating and issued a $130.00 price target on shares of Paychex in a research note on Thursday. Finally, Robert W. Baird cut their price target on Paychex from $126.00 to $124.00 and set a neutral rating on the stock in a research note on Thursday. Two equities research analysts have rated the stock with a sell rating and eleven have given a hold rating to the company. Based on data from MarketBeat.com, Paychex currently has a consensus rating of Hold and a consensus price target of $122.62.

Insider Buying and Selling

In other Paychex news, Director David J. S. Flaschen sold 19,709 shares of Paychex stock in a transaction that occurred on Friday, May 24th. The stock was sold at an average price of $124.55, for a total value of $2,454,755.95. Following the sale, the director now owns 5,383 shares of the company’s stock, valued at approximately $670,452.65. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate 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.