Paychex (NASDAQ:PAYX) Releases FY 2022 Earnings Guidance

Paychex (NASDAQ:PAYXGet Rating) updated its FY 2022 earnings guidance on Wednesday. The company provided EPS guidance of $3.724-$3.739 for the period, compared to the Thomson Reuters consensus EPS estimate of $3.630. The company issued revenue guidance of $4.54 billion-$4.58 billion, compared to the consensus revenue estimate of $4.50 billion.

Shares of PAYX opened at $136.59 on Wednesday. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.27 and a current ratio of 1.27. Paychex has a 52-week low of $95.01 and a 52-week high of $141.92. The firm has a market cap of $49.31 billion, a price-to-earnings ratio of 36.42, a PEG ratio of 4.95 and a beta of 0.99. The business’s fifty day moving average is $125.03 and its 200-day moving average is $123.76.

Paychex (NASDAQ:PAYXGet Rating) last issued its earnings results on Wednesday, March 30th. The business services provider reported $1.15 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.05 by $0.10. The firm had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.22 billion. Paychex had a return on equity of 43.02% and a net margin of 30.23%. The business’s quarterly revenue was up 14.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.96 earnings per share. As a group, research analysts forecast that Paychex will post 3.75 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Thursday, February 24th. Shareholders of record on Monday, January 31st were given a $0.66 dividend. The ex-dividend date was Friday, January 28th. This represents a $2.64 dividend on an annualized basis and a yield of 1.93%. Paychex’s dividend payout ratio is currently 70.40%.

A number of brokerages have recently commented on PAYX. Citigroup increased their price target on Paychex from $140.00 to $145.00 and gave the company a neutral rating in a research note on Wednesday, April 6th. StockNews.com assumed coverage on Paychex in a research note on Thursday, March 31st. They set a hold rating on the stock. Morgan Stanley upped their price objective on Paychex from $135.00 to $140.00 and gave the company an equal weight rating in a research note on Thursday, March 31st. Barclays boosted their target price on shares of Paychex from $115.00 to $140.00 and gave the stock an equal weight rating in a report on Thursday, December 23rd. Finally, Stifel Nicolaus raised their price target on shares of Paychex from $118.00 to $140.00 and gave the company a hold rating in a research note on Thursday, December 23rd. Two research analysts have rated the stock with a sell rating, ten have assigned a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of Hold and a consensus price target of $127.14.

In related news, VP Michael E. Gioja sold 26,000 shares of the business’s stock in a transaction on Tuesday, April 5th. The shares were sold at an average price of $141.26, for a total transaction of $3,672,760.00. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 11.50% of the stock is currently owned by insiders.

A number of hedge funds have recently bought and sold shares of PAYX. Vectors Research Management LLC grew its holdings in shares of Paychex by 67.3% during the fourth quarter. Vectors Research Management LLC now owns 1,964 shares of the business services provider’s stock valued at $268,000 after buying an additional 790 shares during the last quarter. Hardman Johnston Global Advisors LLC acquired a new position in Paychex during the 4th quarter valued at about $218,000. EverSource Wealth Advisors LLC bought a new stake in Paychex during the 4th quarter worth approximately $283,000. Flagship Harbor Advisors LLC purchased a new stake in shares of Paychex in the fourth quarter worth approximately $256,000. Finally, Sequoia Financial Advisors LLC bought a new position in shares of Paychex in the fourth quarter valued at approximately $418,000. 80.08% of the stock is currently owned by institutional investors and hedge funds.

About Paychex (Get Rating)

Paychex, Inc provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States and Europe. The company offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.

Further Reading

Earnings History and Estimates for Paychex (NASDAQ:PAYX)

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