Paychex (NASDAQ:PAYX) Releases Earnings Results, Beats Expectations By $0.02 EPS

Paychex (NASDAQ:PAYX) issued its quarterly earnings results on Wednesday. The business services provider reported $1.12 EPS for the quarter, beating analysts’ consensus estimates of $1.10 by $0.02, Briefing.com reports. Paychex had a return on equity of 46.63% and a net margin of 32.03%. The company had revenue of $1.30 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same period last year, the business posted $0.97 earnings per share. Paychex’s revenue was up 5.3% on a year-over-year basis. Paychex updated its FY25 guidance to $4.96-5.05 EPS and its FY 2025 guidance to 4.960-5.050 EPS.

Paychex Stock Up 0.6 %

Shares of NASDAQ:PAYX opened at $118.56 on Friday. Paychex has a 1 year low of $106.27 and a 1 year high of $129.70. The company has a market cap of $42.68 billion, a PE ratio of 25.39, a P/E/G ratio of 3.07 and a beta of 0.96. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.37 and a quick ratio of 1.24. The stock’s 50-day moving average is $122.38 and its 200 day moving average is $121.98.

Paychex Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 30th. Investors of record on Friday, May 10th were issued a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a yield of 3.31%. The ex-dividend date was Thursday, May 9th. This is an increase from Paychex’s previous quarterly dividend of $0.89. Paychex’s payout ratio is currently 83.94%.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on PAYX shares. Wedbush reaffirmed a “neutral” rating and set a $115.00 price target on shares of Paychex in a research note on Wednesday, April 3rd. Evercore ISI reaffirmed an “in-line” rating and set a $118.00 price target on shares of Paychex in a research note on Tuesday, March 26th. Morgan Stanley dropped their price target on Paychex from $125.00 to $122.00 and set an “equal weight” rating for the company in a research note on Thursday. 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. Finally, Robert W. Baird dropped their price target on Paychex from $126.00 to $124.00 and set a “neutral” rating for the company in a research note on Thursday. Two equities research analysts have rated the stock with a sell rating and eleven have assigned a hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $122.62.

Insider Activity at Paychex

In related news, Director David J. S. Flaschen sold 19,709 shares of the business’s stock in a transaction dated Friday, May 24th. The stock was sold at an average price of $124.55, for a total transaction of $2,454,755.95. Following the transaction, the director now owns 5,383 shares in the company, valued at approximately $670,452.65. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 11.50% of the stock is owned by company 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.