Paychex (NASDAQ:PAYX) Updates 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 $4.97. The company issued revenue guidance of $5.49-5.57 billion, compared to the consensus revenue estimate of $5.54 billion. Paychex also updated its FY 2025 guidance to 4.960-5.050 EPS.

Paychex Stock Performance

NASDAQ:PAYX opened at $117.84 on Friday. The firm’s 50-day moving average is $122.40 and its 200-day moving average is $122.06. Paychex has a 52-week low of $106.27 and a 52-week high of $129.70. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.24 and a current ratio of 1.37. The company has a market cap of $42.42 billion, a price-to-earnings ratio of 25.23, a PEG ratio of 3.24 and a beta of 0.96.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings data on Wednesday, June 26th. The business services provider reported $1.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.10 by $0.02. Paychex had a net margin of 32.03% and a return on equity of 46.63%. The company had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter in the previous year, the firm posted $0.97 EPS. The business’s revenue was up 5.3% compared to the same quarter last year. Equities research analysts anticipate that Paychex will post 4.99 earnings per share 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 paid a $0.98 dividend. The ex-dividend date was Thursday, May 9th. This represents a $3.92 dividend on an annualized basis and a yield of 3.33%. This is a boost from Paychex’s previous quarterly dividend of $0.89. Paychex’s payout ratio is presently 83.94%.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on PAYX shares. Royal Bank of Canada reissued a sector perform rating and issued a $130.00 target price on shares of Paychex in a research note on Thursday. Evercore ISI reissued an in-line rating and issued a $118.00 target price on shares of Paychex in a research note on Tuesday, March 26th. Robert W. Baird lowered their target price on shares of Paychex from $126.00 to $124.00 and set a neutral rating on the stock in a research note on Thursday. 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, Morgan Stanley reduced their price target on shares of Paychex from $125.00 to $122.00 and set an equal weight rating on the stock in a research report on Thursday. Two equities research 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 currently has an average rating of Hold and a consensus price target of $122.62.

Insider Transactions at Paychex

In related 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 shares were sold at an average price of $124.55, for a total transaction of $2,454,755.95. Following the completion of the sale, the director now directly owns 5,383 shares of the company’s stock, valued at $670,452.65. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 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.