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 EPS guidance of 4.960-5.050 for the period, compared to the consensus EPS 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.

Paychex Trading Down 0.5 %

Shares of NASDAQ:PAYX opened at $144.13 on Wednesday. The firm has a fifty day moving average of $147.91 and a two-hundred day moving average of $142.99. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 0.20. Paychex has a 12-month low of $114.72 and a 12-month high of $158.37. The firm has a market capitalization of $51.90 billion, a P/E ratio of 30.34, a price-to-earnings-growth ratio of 4.10 and a beta of 0.98.

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

Paychex Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, February 27th. Investors of record on Friday, February 7th were paid a $0.98 dividend. This represents a $3.92 annualized dividend and a dividend yield of 2.72%. The ex-dividend date was Friday, February 7th. Paychex’s payout ratio is presently 82.53%.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the company. UBS Group upped their price target on Paychex from $152.00 to $155.00 and gave the company a “neutral” rating in a report on Tuesday, March 4th. Barclays raised their target price on Paychex from $135.00 to $140.00 and gave the stock an “equal weight” rating in a research report on Monday, December 23rd. Finally, Royal Bank of Canada reissued a “sector perform” rating and issued a $148.00 price target on shares of Paychex in a report on Friday, December 20th. Two investment analysts have rated the stock with a sell rating and eleven have issued a hold rating to the company’s stock. Based on data from MarketBeat.com, Paychex presently has an average rating of “Hold” and a consensus target price of $133.23.

Institutional Trading of Paychex

A hedge fund recently raised its stake in Paychex stock. Brighton Jones LLC grew its stake in Paychex, Inc. (NASDAQ:PAYX) by 26.3% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 5,710 shares of the business services provider’s stock after acquiring 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 and hedge funds.

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.