Paychex (NASDAQ:PAYX) Issues FY 2025 Earnings Guidance

Paychex (NASDAQ:PAYX) updated its FY 2025 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 4.960-5.050 for the period, compared to the consensus estimate of 4.980. The company issued revenue guidance of $5.5 billion-$5.6 billion, compared to the consensus revenue estimate of $5.5 billion. Paychex also updated its FY25 guidance to $4.96-5.05 EPS.

Analyst Ratings Changes

Several research analysts have commented on PAYX shares. Jefferies Financial Group raised their price objective on Paychex from $120.00 to $130.00 and gave the stock a “hold” rating in a report on Wednesday, October 2nd. UBS Group raised their price target on Paychex from $125.00 to $142.00 and gave the company a “neutral” rating in a research note on Wednesday, October 2nd. Stifel Nicolaus upped their price objective on shares of Paychex from $130.00 to $141.00 and gave the stock a “hold” rating in a research note on Wednesday, October 2nd. TD Cowen raised their target price on shares of Paychex from $126.00 to $131.00 and gave the company a “hold” rating in a research report on Wednesday, October 2nd. Finally, Royal Bank of Canada reaffirmed a “sector perform” rating and issued a $148.00 price target on shares of Paychex in a research report on Friday. Two analysts have rated the stock with a sell rating and eleven have given a hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $131.62.

Paychex Stock Performance

Shares of PAYX opened at $139.54 on Friday. Paychex has a 12 month low of $114.72 and a 12 month high of $150.71. The stock has a fifty day moving average price of $142.73 and a 200-day moving average price of $132.62. The company has a current ratio of 1.38, a quick ratio of 1.38 and a debt-to-equity ratio of 0.21. The firm has a market cap of $50.22 billion, a PE ratio of 29.75, a P/E/G ratio of 3.88 and a beta of 0.99.

Paychex (NASDAQ:PAYX) last released its quarterly earnings results on Thursday, December 19th. The business services provider reported $1.14 EPS for the quarter, beating analysts’ consensus estimates of $1.12 by $0.02. Paychex had a return on equity of 45.97% and a net margin of 31.98%. The company had revenue of $1.32 billion during the quarter, compared to analysts’ expectations of $1.31 billion. During the same period last year, the business posted $1.08 earnings per share. The firm’s revenue was up 4.7% compared to the same quarter last year. Equities research analysts predict that Paychex will post 4.98 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, November 27th. Shareholders of record on Thursday, November 7th were paid a dividend of $0.98 per share. The ex-dividend date of this dividend was Thursday, November 7th. This represents a $3.92 dividend on an annualized basis and a yield of 2.81%. Paychex’s payout ratio is 83.58%.

Insiders Place Their Bets

In related news, CFO Robert L. Schrader sold 13,015 shares of the stock in a transaction that occurred on Tuesday, October 15th. The shares were sold at an average price of $142.35, for a total value of $1,852,685.25. Following the transaction, the chief financial officer now owns 17,362 shares in the company, valued at approximately $2,471,480.70. This represents a 42.84 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Michael E. Gioja sold 26,428 shares of Paychex stock in a transaction that occurred on Wednesday, October 9th. The shares were sold at an average price of $139.03, for a total transaction of $3,674,284.84. Following the sale, the vice president now owns 14,515 shares of the company’s stock, valued at approximately $2,018,020.45. The trade was a 64.55 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 54,174 shares of company stock valued at $7,577,231. Insiders own 11.40% of the company’s stock.

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.