Paychex (NASDAQ:PAYX) Issues FY 2025 Earnings Guidance

Paychex (NASDAQ:PAYX) issued an update on its FY 2025 earnings guidance on Tuesday morning. 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 $5.5 billion. Paychex also updated its FY25 guidance to $4.96-5.05 EPS.

Paychex Stock Performance

PAYX opened at $139.36 on Friday. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.37 and a current ratio of 1.37. The business’s 50-day simple moving average is $130.19 and its 200 day simple moving average is $124.70. The firm has a market capitalization of $50.13 billion, a PE ratio of 29.84, a PEG ratio of 3.52 and a beta of 1.00. Paychex has a 52-week low of $106.27 and a 52-week high of $142.04.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings results on Tuesday, October 1st. The business services provider reported $1.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.14 by $0.02. The firm had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.31 billion. Paychex had a net margin of 32.03% and a return on equity of 46.63%. The company’s quarterly revenue was up 2.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.14 earnings per share. As a group, sell-side analysts expect that Paychex will post 4.99 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 29th. Shareholders of record on Thursday, August 8th were given a dividend of $0.98 per share. The ex-dividend date of this dividend was Thursday, August 8th. This represents a $3.92 dividend on an annualized basis and a yield of 2.81%. Paychex’s dividend payout ratio (DPR) is 83.94%.

Analyst Ratings Changes

PAYX has been the subject of several research reports. Jefferies Financial Group lifted their price target on Paychex from $120.00 to $130.00 and gave the stock a hold rating in a report on Wednesday. Bank of America lifted their target price on Paychex from $111.00 to $113.00 and gave the stock an underperform rating in a report on Thursday, June 27th. TD Cowen upped their price target on shares of Paychex from $126.00 to $131.00 and gave the company a hold rating in a research note on Wednesday. Barclays lifted their price objective on shares of Paychex from $118.00 to $132.00 and gave the stock an equal weight rating in a research note on Monday, September 23rd. Finally, Morgan Stanley increased their target price on shares of Paychex from $122.00 to $133.00 and gave the stock an equal weight rating in a research report on Wednesday. Two analysts have rated the stock with a sell rating and twelve have given a hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of Hold and an average price target of $130.77.

Insider Buying and Selling

In related news, CEO John B. Gibson sold 12,670 shares of the company’s stock in a transaction that occurred on Monday, July 15th. The stock was sold at an average price of $119.53, for a total value of $1,514,445.10. Following the sale, the chief executive officer now directly owns 55,745 shares in the company, valued at $6,663,199.85. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. In other Paychex news, CEO John B. Gibson sold 12,670 shares of the stock in a transaction dated Monday, July 15th. The stock was sold at an average price of $119.53, for a total transaction of $1,514,445.10. Following the completion of the sale, the chief executive officer now directly owns 55,745 shares in the company, valued at approximately $6,663,199.85. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Mark Anthony Bottini sold 8,954 shares of the business’s stock in a transaction dated Wednesday, July 24th. The shares were sold at an average price of $123.60, for a total value of $1,106,714.40. Following the completion of the transaction, the vice president now directly owns 79,232 shares in the company, valued at $9,793,075.20. The disclosure for this sale can be found here. Insiders sold a total of 45,673 shares of company stock valued at $5,636,085 in the last three months. Insiders own 11.50% of the company’s stock.

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.