Paychex (NASDAQ:PAYX) Releases FY 2025 Earnings Guidance

Paychex (NASDAQ:PAYX) issued an update on its FY 2025 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 4.960-5.050 for the period, compared to the consensus earnings per share 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.

Analyst Ratings Changes

Several brokerages have issued reports on PAYX. UBS Group lifted their target price on shares of Paychex from $152.00 to $155.00 and gave the company a “neutral” rating in a research report on Tuesday, March 4th. Royal Bank of Canada reaffirmed a “sector perform” rating and issued a $148.00 price target on shares of Paychex in a research note on Friday, December 20th. Citigroup upped their price target on Paychex from $145.00 to $158.00 and gave the stock a “neutral” rating in a research note on Thursday. Barclays boosted their target price on Paychex from $135.00 to $140.00 and gave the stock an “equal weight” rating in a report on Monday, December 23rd. Finally, Morgan Stanley lifted their target price on Paychex from $137.00 to $142.00 and gave the stock an “equal weight” rating in a report on Thursday. Two research analysts have rated the stock with a sell rating and ten have issued a hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $137.58.

Paychex Stock Up 1.1 %

NASDAQ PAYX opened at $151.83 on Friday. Paychex has a 52 week low of $114.72 and a 52 week high of $158.37. 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 $54.67 billion, a PE ratio of 31.96, a P/E/G ratio of 4.10 and a beta of 0.98. The business’s fifty day simple moving average is $148.13 and its 200-day simple moving average is $143.10.

Paychex (NASDAQ:PAYX) last released its earnings results 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. The firm had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.51 billion. Paychex had a return on equity of 45.28% and a net margin of 32.02%. Paychex’s revenue was up 4.8% compared to the same quarter last year. During the same period last year, the business posted $1.38 earnings per share. As a group, equities analysts anticipate that Paychex will post 4.99 earnings per share for the current year.

Paychex Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, February 27th. Stockholders of record on Friday, February 7th were paid a dividend of $0.98 per share. The ex-dividend date of this dividend was Friday, February 7th. This represents a $3.92 annualized dividend and a dividend yield of 2.58%. Paychex’s dividend payout ratio (DPR) is 81.67%.

Hedge Funds Weigh In On Paychex

An institutional investor recently raised its position in Paychex stock. Brighton Jones LLC grew its holdings in shares of Paychex, Inc. (NASDAQ:PAYX) by 26.3% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm 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 quarter. 83.47% of the stock is currently owned by institutional investors.

About Paychex

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.