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 earnings per share guidance of 4.960-5.050 for the period, compared to the consensus earnings per share estimate of 4.970. The company issued revenue guidance of $5.5 billion-$5.6 billion, compared to the consensus revenue estimate of $5.6 billion. Paychex also updated its FY25 guidance to $4.96-5.05 EPS.

Paychex Stock Performance

Shares of PAYX stock traded down $6.75 during mid-day trading on Wednesday, reaching $118.28. The stock had a trading volume of 1,804,566 shares, compared to its average volume of 1,782,394. The firm has a market cap of $42.58 billion, a PE ratio of 25.87, a P/E/G ratio of 3.47 and a beta of 0.96. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 0.21. Paychex has a one year low of $106.27 and a one year high of $129.70. The firm’s 50 day simple moving average is $122.43 and its 200 day simple moving average is $122.09.

Paychex (NASDAQ:PAYX) last issued its earnings results on Wednesday, June 26th. The business services provider reported $1.12 earnings per share for the quarter, beating the consensus estimate of $1.10 by $0.02. The business had revenue of $1.30 billion for the quarter, compared to analyst estimates of $1.29 billion. Paychex had a net margin of 31.86% and a return on equity of 46.14%. The firm’s revenue was up 5.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.97 EPS. On average, analysts forecast that Paychex will post 4.71 EPS for the current year.

Paychex Increases Dividend

The firm also recently announced 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 represents a $3.92 annualized dividend and a dividend yield of 3.31%. The ex-dividend date of this dividend was Thursday, May 9th. This is a boost from Paychex’s previous quarterly dividend of $0.89. Paychex’s dividend payout ratio is presently 85.40%.

Analyst Upgrades and Downgrades

A number of analysts recently commented on PAYX shares. Bank of America lifted their price objective on Paychex from $108.00 to $111.00 and gave the stock an underperform rating in a research report on Wednesday, April 3rd. TD Cowen reduced their price target on Paychex from $122.00 to $121.00 and set a hold rating on the stock in a research report on Wednesday, April 3rd. Evercore ISI reiterated an in-line rating and issued a $118.00 price objective on shares of Paychex in a report on Tuesday, March 26th. Wedbush reissued a neutral rating and issued a $115.00 target price on shares of Paychex in a research note on Wednesday, April 3rd. Finally, Royal Bank of Canada restated a sector perform rating and set a $130.00 target price on shares of Paychex in a research report on Tuesday, May 21st. Two equities research analysts have rated the stock with a sell rating and ten have given a hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of Hold and a consensus target price of $123.00.

Insider Transactions at Paychex

In other Paychex news, Director David J. S. Flaschen sold 19,709 shares of the stock in a transaction dated 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 completion of the transaction, the director now directly owns 5,383 shares in the company, valued at $670,452.65. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 11.50% of the company’s stock.

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.