Paychex (NASDAQ:PAYX) Updates FY 2025 Earnings Guidance

Paychex (NASDAQ:PAYX - Get Free Report) updated its FY 2025 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 4.960-5.050 for the period, compared to the consensus estimate of 4.990. 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.

Wall Street Analyst Weigh In

PAYX has been the topic of several recent research reports. Morgan Stanley lifted their price objective on shares of Paychex from $137.00 to $142.00 and gave the stock an "equal weight" rating in a research note on Thursday. Citigroup lifted their price target on shares of Paychex from $145.00 to $158.00 and gave the stock a "neutral" rating in a research report on Thursday. Royal Bank of Canada reiterated a "sector perform" rating and set a $148.00 price objective on shares of Paychex in a research report on Friday, December 20th. Stifel Nicolaus lifted their target price on Paychex from $141.00 to $156.00 and gave the stock a "hold" rating in a report on Thursday. Finally, Barclays boosted their target price on Paychex from $135.00 to $140.00 and gave the stock an "equal weight" rating in a research report on Monday, December 23rd. Two research analysts have rated the stock with a sell rating and ten have issued a hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $137.58.

Paychex Stock Down 0.5 %

Shares of PAYX traded down $0.80 during trading hours on Friday, reaching $151.03. The company's stock had a trading volume of 2,419,745 shares, compared to its average volume of 1,895,574. The company has a 50 day moving average of $148.22 and a two-hundred day moving average of $143.30. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 0.20. The firm has a market cap of $54.38 billion, a price-to-earnings ratio of 31.80, a P/E/G ratio of 4.10 and a beta of 0.98. Paychex has a 1-year low of $114.72 and a 1-year high of $158.37.

Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings data on Wednesday, March 26th. The business services provider reported $1.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 quarter last year, the firm earned $1.38 earnings per share. The business's revenue for the quarter was up 4.8% on a year-over-year basis. As a group, research analysts predict that Paychex will post 4.99 EPS for the current fiscal year.

Paychex Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, February 27th. Shareholders of record on Friday, February 7th were paid a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a yield of 2.60%. The ex-dividend date was Friday, February 7th. Paychex's dividend payout ratio (DPR) is presently 81.67%.

Institutional Investors Weigh In On Paychex

A hedge fund recently raised its stake in Paychex stock. Brighton Jones LLC grew its stake in Paychex, Inc. (NASDAQ:PAYX - Free Report) by 26.3% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 5,710 shares of the business services provider's stock after buying an additional 1,190 shares during the period. Brighton Jones LLC's holdings in Paychex were worth $801,000 as of its most recent SEC filing. 83.47% of the stock is owned by institutional investors and hedge funds.

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.