Paychex (NASDAQ:PAYX) Updates FY 2022 Earnings Guidance

Paychex (NASDAQ:PAYX) issued an update on its FY 2022 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of $3.410-$3.470 for the period, compared to the Thomson Reuters consensus estimate of $3.38. The company issued revenue guidance of $4.38 billion-$4.38 billion, compared to the consensus revenue estimate of $4.36 billion.

PAYX stock opened at $117.46 on Thursday. Paychex has a 52 week low of $79.63 and a 52 week high of $119.38. The company has a market capitalization of $42.36 billion, a price-to-earnings ratio of 38.64, a price-to-earnings-growth ratio of 4.09 and a beta of 0.91. The firm’s 50-day moving average is $113.54 and its two-hundred day moving average is $106.99. The company has a current ratio of 1.25, a quick ratio of 1.25 and a debt-to-equity ratio of 0.27.

Paychex (NASDAQ:PAYX) last released its quarterly earnings results on Wednesday, September 29th. The business services provider reported $0.89 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.80 by $0.09. The business had revenue of $1.09 billion for the quarter, compared to analyst estimates of $1.04 billion. Paychex had a net margin of 27.05% and a return on equity of 38.04%. The firm’s revenue was up 16.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.63 earnings per share. On average, equities research analysts predict that Paychex will post 3.37 earnings per share for the current year.

Paychex announced that its board has initiated a stock buyback program on Thursday, July 8th that permits the company to buyback $400.00 million in shares. This buyback authorization permits the business services provider to repurchase up to 1% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s management believes its shares are undervalued.

Several analysts recently issued reports on PAYX shares. Wolfe Research upped their price objective on shares of Paychex from $94.00 to $105.00 and gave the stock an underperform rating in a report on Friday, July 2nd. JPMorgan Chase & Co. upped their price objective on shares of Paychex from $105.00 to $111.00 and gave the company an underweight rating in a research report on Tuesday, August 17th. boosted their price target on Paychex from $105.00 to $121.00 and gave the company a buy rating in a research note on Wednesday, June 30th. Robert W. Baird boosted their price target on Paychex from $111.00 to $120.00 and gave the company a neutral rating in a research note on Monday, October 4th. Finally, BMO Capital Markets boosted their price target on Paychex from $112.00 to $118.00 and gave the company a market perform rating in a research note on Friday, October 1st. Three research analysts have rated the stock with a sell rating, nine have assigned a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat, Paychex has an average rating of Hold and an average price target of $109.83.

In other Paychex news, CEO Martin Mucci sold 137,713 shares of the company’s stock in a transaction on Friday, July 16th. The shares were sold at an average price of $112.55, for a total transaction of $15,499,598.15. Following the completion of the sale, the chief executive officer now owns 410,374 shares in the company, valued at approximately $46,187,593.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Robert L. Schrader sold 686 shares of the company’s stock in a transaction on Sunday, August 1st. The shares were sold at an average price of $113.82, for a total transaction of $78,080.52. Following the sale, the vice president now owns 12,411 shares of the company’s stock, valued at approximately $1,412,620.02. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 249,477 shares of company stock worth $28,072,980. Company insiders own 11.70% of the company’s stock.

Paychex Company Profile

Paychex, Inc engages in the provision of human capital management solutions for payroll, human resource, insurance and retirement for small and medium sized businesses. Its solutions include payroll services, hiring services, business insurance, time and attendance, employee benefits, finance and payments, human resources services and startup services.

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Earnings History and Estimates for Paychex (NASDAQ:PAYX)

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