Paychex (NASDAQ:PAYX) Updates 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 4.970. 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.

Analysts Set New Price Targets

A number of brokerages recently commented on PAYX. Royal Bank of Canada reiterated a sector perform rating and issued a $130.00 price target on shares of Paychex in a research note on Thursday. Morgan Stanley lowered their target price on Paychex from $125.00 to $122.00 and set an equal weight rating on the stock in a research note on Thursday. Bank of America increased their target price on shares of Paychex from $111.00 to $113.00 and gave the stock an underperform rating in a research report on Thursday. Evercore ISI reissued an in-line rating and set a $118.00 target price on shares of Paychex in a report on Tuesday, March 26th. Finally, TD Cowen dropped their price target on Paychex from $122.00 to $121.00 and set a hold rating for the company in a research note on Wednesday, April 3rd. Two analysts have rated the stock with a sell rating and eleven have given a hold rating to the stock. According to data from MarketBeat, Paychex presently has a consensus rating of Hold and an average target price of $122.62.

Paychex Stock Performance

NASDAQ PAYX opened at $118.56 on Friday. The company has a market capitalization of $42.68 billion, a price-to-earnings ratio of 25.39, a PEG ratio of 3.07 and a beta of 0.96. Paychex has a twelve month low of $106.27 and a twelve month high of $129.70. The company has a quick ratio of 1.24, a current ratio of 1.37 and a debt-to-equity ratio of 0.21. The stock has a fifty day simple moving average of $122.38 and a 200 day simple moving average of $121.98.

Paychex (NASDAQ:PAYX) last announced its earnings results on Wednesday, June 26th. The business services provider reported $1.12 earnings per share for the quarter, topping analysts’ consensus estimates of $1.10 by $0.02. The business had revenue of $1.30 billion during the quarter, compared to the consensus estimate of $1.29 billion. Paychex had a net margin of 32.03% and a return on equity of 46.63%. Paychex’s quarterly revenue was up 5.3% on a year-over-year basis. During the same quarter last year, the firm earned $0.97 earnings per share. Sell-side analysts expect that Paychex will post 4.98 EPS for the current year.

Paychex Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, May 30th. Investors 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. The ex-dividend date was Thursday, May 9th. This represents a $3.92 annualized dividend and a dividend yield of 3.31%. Paychex’s dividend payout ratio is presently 83.94%.

Insiders Place Their Bets

In other Paychex news, Director David J. S. Flaschen sold 19,709 shares of the business’s 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 transaction, the director now directly owns 5,383 shares of the company’s stock, valued at $670,452.65. The sale was disclosed in a legal filing with the SEC, which is available through this link. 11.50% of the stock is currently owned by corporate insiders.

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.