Paychex (NASDAQ:PAYX) Issues FY25 Earnings Guidance

Paychex (NASDAQ:PAYX - Get Free Report) issued an update on its FY25 earnings guidance on Wednesday morning. The company provided EPS guidance of $4.96-5.05 for the period, compared to the consensus EPS 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.

Paychex Stock Down 0.5 %

NASDAQ PAYX traded down $0.80 on Friday, hitting $151.03. The stock had a trading volume of 2,419,745 shares, compared to its average volume of 1,895,574. The business's fifty day moving average price is $148.22 and its 200 day moving average price is $143.30. The stock has a market cap of $54.38 billion, a price-to-earnings ratio of 31.80, a price-to-earnings-growth ratio of 4.10 and a beta of 0.98. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.39 and a quick ratio of 1.39. Paychex has a 52-week low of $114.72 and a 52-week high of $158.37.

Paychex (NASDAQ:PAYX - Get Free Report) last announced 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. The firm had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.51 billion. Paychex had a return on equity of 45.28% and a net margin of 32.02%. The firm's revenue for the quarter was up 4.8% on a year-over-year basis. During the same period in the previous year, the business earned $1.38 EPS. Equities research analysts anticipate that Paychex will post 4.99 earnings per share for the current year.

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Paychex Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, February 27th. Investors 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%.

Analyst Upgrades and Downgrades

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

Institutional Inflows and Outflows

An institutional investor recently raised its position in Paychex stock. Brighton Jones LLC boosted its holdings in shares of Paychex, Inc. (NASDAQ:PAYX - Free Report) by 26.3% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. 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 reporting period. 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.