Paychex (NASDAQ:PAYX) Releases FY25 Earnings Guidance

Paychex (NASDAQ:PAYX) issued an update on its FY25 earnings guidance on Wednesday morning. The company provided earnings per share guidance of $4.96-5.05 for the period, compared to the consensus earnings per share 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. Paychex also updated its FY 2025 guidance to 4.960-5.050 EPS.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on PAYX shares. Royal Bank of Canada restated a “sector perform” rating and issued a $148.00 target price on shares of Paychex in a research note on Friday, December 20th. Citigroup raised their target price on shares of Paychex from $145.00 to $158.00 and gave the company a “neutral” rating in a research report on Thursday. UBS Group boosted their price target on shares of Paychex from $152.00 to $155.00 and gave the stock a “neutral” rating in a research report on Tuesday, March 4th. Barclays raised their price objective on Paychex from $135.00 to $140.00 and gave the company an “equal weight” rating in a report on Monday, December 23rd. Finally, Stifel Nicolaus upped their target price on Paychex from $141.00 to $156.00 and gave the stock a “hold” rating in a report on Thursday. Two equities research analysts have rated the stock with a sell rating and ten have given a hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $137.58.

Paychex Stock Performance

NASDAQ PAYX opened at $151.83 on Friday. The firm has a 50-day moving average price of $148.13 and a two-hundred day moving average price of $143.10. Paychex has a 12-month low of $114.72 and a 12-month high of $158.37. The company has a market capitalization of $54.67 billion, a P/E ratio of 31.96, a P/E/G ratio of 4.10 and a beta of 0.98. 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 (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 the consensus estimate of $1.48 by $0.01. Paychex had a return on equity of 45.28% and a net margin of 32.02%. The firm had revenue of $1.51 billion during the quarter, compared to analysts’ expectations of $1.51 billion. During the same period in the prior year, the company earned $1.38 earnings per share. The company’s quarterly revenue was up 4.8% on a year-over-year basis. Analysts anticipate that Paychex will post 4.99 earnings per share for the current year.

Paychex Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, February 27th. Shareholders of record on Friday, February 7th were issued a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a yield of 2.58%. The ex-dividend date of this dividend was Friday, February 7th. Paychex’s payout ratio is presently 81.67%.

Institutional Trading of Paychex

A hedge fund recently raised its stake in Paychex stock. Brighton Jones LLC boosted its holdings in Paychex, Inc. (NASDAQ:PAYX) by 26.3% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 5,710 shares of the business services provider’s stock after purchasing 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 hedge funds and other 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.