Paychex (NASDAQ:PAYX) Issues FY 2025 Earnings Guidance

Paychex (NASDAQ:PAYX) updated its FY 2025 earnings guidance on Tuesday. The company provided EPS guidance of 4.960-5.050 for the period, compared to the consensus EPS estimate of 4.970. 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

Several analysts have weighed in on the company. TD Cowen boosted their price objective on Paychex from $126.00 to $131.00 and gave the stock a hold rating in a report on Wednesday. Citigroup increased their price target on shares of Paychex from $125.00 to $145.00 and gave the company a neutral rating in a research report on Wednesday, September 25th. Morgan Stanley increased their price target on shares of Paychex from $122.00 to $133.00 and gave the company an equal weight rating in a research report on Wednesday. UBS Group increased their price target on shares of Paychex from $125.00 to $142.00 and gave the company a neutral rating in a research report on Wednesday. Finally, Jefferies Financial Group increased their price target on shares of Paychex from $120.00 to $130.00 and gave the company a hold rating in a research report on Wednesday. Two investment analysts have rated the stock with a sell rating and twelve have assigned a hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of Hold and a consensus target price of $130.71.

Paychex Stock Performance

Shares of PAYX stock opened at $140.76 on Thursday. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.37 and a current ratio of 1.37. The company has a market capitalization of $50.64 billion, a P/E ratio of 30.14, a price-to-earnings-growth ratio of 3.52 and a beta of 1.00. The company’s 50 day moving average price is $129.88 and its two-hundred day moving average price is $124.60. Paychex has a 52 week low of $106.27 and a 52 week high of $142.04.

Paychex (NASDAQ:PAYX) last announced its earnings results on Tuesday, October 1st. The business services provider reported $1.16 EPS for the quarter, topping the consensus estimate of $1.14 by $0.02. The firm had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.31 billion. Paychex had a net margin of 32.03% and a return on equity of 46.63%. The business’s quarterly revenue was up 2.5% on a year-over-year basis. During the same period last year, the company posted $1.14 EPS. On average, analysts expect that Paychex will post 4.99 earnings per share for the current fiscal year.

Paychex Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 29th. Investors of record on Thursday, August 8th were paid a $0.98 dividend. The ex-dividend date was Thursday, August 8th. This represents a $3.92 annualized dividend and a dividend yield of 2.78%. Paychex’s dividend payout ratio is presently 83.94%.

Insider Activity at Paychex

In related news, Director David J. S. Flaschen sold 9,615 shares of the firm’s stock in a transaction on Friday, July 26th. The shares were sold at an average price of $125.60, for a total value of $1,207,644.00. Following the completion of the transaction, the director now directly owns 5,383 shares of the company’s stock, valued at $676,104.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In other Paychex news, VP Mark Anthony Bottini sold 8,954 shares of the firm’s stock in a transaction on Wednesday, July 24th. The stock was sold at an average price of $123.60, for a total transaction of $1,106,714.40. Following the completion of the sale, the vice president now owns 79,232 shares of the company’s stock, valued at approximately $9,793,075.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director David J. S. Flaschen sold 9,615 shares of the firm’s stock in a transaction on Friday, July 26th. The shares were sold at an average price of $125.60, for a total value of $1,207,644.00. Following the sale, the director now directly owns 5,383 shares of the company’s stock, valued at approximately $676,104.80. The disclosure for this sale can be found here. Over the last three months, insiders sold 45,673 shares of company stock valued at $5,636,085. 11.50% of the stock is owned by corporate insiders.

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.