Paychex (NASDAQ:PAYX) Updates FY 2025 Earnings Guidance

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

Paychex Stock Performance

NASDAQ PAYX opened at $139.36 on Friday. The company has a fifty day moving average price of $130.19 and a 200-day moving average price of $124.70. The firm has a market cap of $50.13 billion, a price-to-earnings ratio of 29.84, a PEG ratio of 3.52 and a beta of 1.00. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.37 and a quick ratio of 1.37. Paychex has a 1 year low of $106.27 and a 1 year high of $142.04.

Paychex (NASDAQ:PAYX) last issued its quarterly earnings data on Tuesday, October 1st. The business services provider reported $1.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.14 by $0.02. The business had revenue of $1.32 billion during 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 firm’s quarterly revenue was up 2.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.14 EPS. As a group, equities research analysts predict that Paychex will post 4.99 EPS for the current fiscal year.

Paychex Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 29th. Investors of record on Thursday, August 8th were issued a dividend of $0.98 per share. The ex-dividend date was Thursday, August 8th. This represents a $3.92 dividend on an annualized basis and a yield of 2.81%. Paychex’s dividend payout ratio (DPR) is currently 83.94%.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Stifel Nicolaus lifted their price objective on shares of Paychex from $130.00 to $141.00 and gave the stock a hold rating in a research report on Wednesday. Morgan Stanley lifted their price target on shares of Paychex from $122.00 to $133.00 and gave the stock an equal weight rating in a report on Wednesday. Bank of America increased their price objective on Paychex from $111.00 to $113.00 and gave the company an underperform rating in a report on Thursday, June 27th. Royal Bank of Canada increased their target price on shares of Paychex from $130.00 to $148.00 and gave the stock a sector perform rating in a research report on Wednesday. Finally, Jefferies Financial Group boosted their price objective on Paychex from $120.00 to $130.00 and gave the company a hold rating in a research note on Wednesday. Two research analysts have rated the stock with a sell rating and twelve have assigned a hold rating to the company. According to MarketBeat, the company currently has an average rating of Hold and a consensus target price of $130.77.

Insider Activity

In other news, Director David J. S. Flaschen sold 9,615 shares of the company’s stock in a transaction dated 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. In other news, Director David J. S. Flaschen sold 14,434 shares of the stock in a transaction on Monday, August 5th. The stock was sold at an average price of $125.21, for a total value of $1,807,281.14. Following the sale, the director now directly owns 5,383 shares of the company’s stock, valued at $674,005.43. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director David J. S. Flaschen sold 9,615 shares of Paychex stock in a transaction dated Friday, July 26th. The stock was 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 approximately $676,104.80. The disclosure for this sale can be found here. Insiders sold a total of 45,673 shares of company stock worth $5,636,085 in the last quarter. 11.50% of the stock is owned by company 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.