Paychex (NASDAQ:PAYX) Updates FY25 Earnings Guidance

Paychex (NASDAQ:PAYX) updated its FY25 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of $4.96-5.05 for the period, compared to the consensus 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 Price Performance

NASDAQ PAYX opened at $144.13 on Wednesday. The firm’s fifty day simple moving average is $147.91 and its two-hundred day simple moving average is $142.99. The firm has a market capitalization of $51.90 billion, a P/E ratio of 30.34, a P/E/G ratio of 4.10 and a beta of 0.98. The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 0.20. Paychex has a 12-month low of $114.72 and a 12-month high of $158.37.

Paychex (NASDAQ:PAYX) 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. Paychex had a return on equity of 45.28% and a net margin of 32.02%. The firm had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.51 billion. During the same period in the previous year, the business earned $1.38 EPS. The firm’s revenue for the quarter was up 4.8% on a year-over-year basis. Analysts forecast that Paychex will post 4.99 EPS for the current fiscal year.

Paychex Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, February 27th. Stockholders of record on Friday, February 7th were issued a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a dividend yield of 2.72%. The ex-dividend date of this dividend was Friday, February 7th. Paychex’s dividend payout ratio (DPR) is presently 82.53%.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on PAYX. UBS Group raised their price objective on Paychex from $152.00 to $155.00 and gave the stock a “neutral” rating in a research note on Tuesday, March 4th. Royal Bank of Canada reissued a “sector perform” rating and set a $148.00 price target on shares of Paychex in a research report on Friday, December 20th. Finally, Barclays lifted their price objective on shares of Paychex from $135.00 to $140.00 and gave the company an “equal weight” rating in a research note on Monday, December 23rd. Two equities research analysts have rated the stock with a sell rating and eleven have given a hold rating to the stock. According to data from MarketBeat.com, Paychex has an average rating of “Hold” and an average target price of $133.23.

Hedge Funds Weigh In On Paychex

An institutional investor recently raised its position in Paychex stock. Brighton Jones LLC grew its stake in Paychex, Inc. (NASDAQ:PAYX) by 26.3% during the 4th quarter, according to the company in its most recent disclosure 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 as of its most recent SEC filing. Institutional investors own 83.47% of the company’s stock.

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.