Paychex (NASDAQ:PAYX) Issues 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 $4.99. The company issued revenue guidance of $5.49-5.57 billion, compared to the consensus revenue estimate of $5.52 billion.

Analyst Upgrades and Downgrades

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

Paychex Stock Performance

NASDAQ PAYX opened at $144.13 on Wednesday. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.39 and a quick ratio of 1.39. The company has a market cap of $51.90 billion, a P/E ratio of 30.34, a P/E/G ratio of 4.10 and a beta of 0.98. The stock has a 50-day moving average of $147.91 and a two-hundred day moving average of $142.99. Paychex has a 1-year low of $114.72 and a 1-year high of $158.37.

Paychex (NASDAQ:PAYX) last released its 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. Paychex had a net margin of 32.02% and a return on equity of 45.28%. The firm had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.51 billion. During the same period in the prior year, the firm earned $1.38 earnings per share. The business’s quarterly revenue was up 4.8% compared to the same quarter last year. As a group, analysts anticipate that Paychex will post 4.99 EPS for the current year.

Paychex Announces Dividend

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

Hedge Funds Weigh In On Paychex

A hedge fund recently raised its stake in Paychex stock. Brighton Jones LLC grew its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 26.3% in the fourth quarter, according to 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 buying an additional 1,190 shares during the period. Brighton Jones LLC’s holdings in Paychex were worth $801,000 as of its most recent filing with the Securities and Exchange Commission (SEC). 83.47% of the stock is currently owned by institutional investors.

Paychex Company Profile

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.