Paychex, Inc. (PAYX) Expected to Post Earnings of $0.65 Per Share

Equities research analysts expect that Paychex, Inc. (NASDAQ:PAYX) will post earnings of $0.65 per share for the current quarter, according to Zacks. Ten analysts have issued estimates for Paychex’s earnings. The highest EPS estimate is $0.67 and the lowest is $0.62. Paychex posted earnings of $0.61 per share during the same quarter last year, which would indicate a positive year over year growth rate of 6.6%. The firm is scheduled to report its next earnings results on Wednesday, June 26th.

On average, analysts expect that Paychex will report full-year earnings of $2.85 per share for the current fiscal year, with EPS estimates ranging from $2.81 to $2.89. For the next year, analysts expect that the company will report earnings of $3.10 per share, with EPS estimates ranging from $3.05 to $3.20. Zacks’ EPS averages are an average based on a survey of sell-side research firms that follow Paychex.

Paychex (NASDAQ:PAYX) last released its quarterly earnings data on Wednesday, March 27th. The business services provider reported $0.89 EPS for the quarter, hitting analysts’ consensus estimates of $0.89. Paychex had a net margin of 28.19% and a return on equity of 43.20%. The firm had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.07 billion. During the same quarter in the previous year, the company posted $0.63 earnings per share. The firm’s revenue was up 14.3% on a year-over-year basis.



Several brokerages have recently issued reports on PAYX. Sanford C. Bernstein downgraded shares of Paychex from a “market perform” rating to an “underperform” rating in a report on Tuesday, April 30th. Barclays boosted their price target on shares of Paychex from $78.00 to $80.00 and gave the company an “equal weight” rating in a report on Monday, April 1st. Finally, Credit Suisse Group boosted their price target on shares of Paychex from $82.00 to $84.00 and gave the company an “outperform” rating in a report on Thursday, March 28th. Two investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating, two have given a buy rating and one has issued a strong buy rating to the company’s stock. Paychex has a consensus rating of “Hold” and a consensus price target of $74.14.

In related news, Director Joseph M. Velli sold 6,250 shares of the company’s stock in a transaction dated Monday, April 8th. The shares were sold at an average price of $80.59, for a total value of $503,687.50. Following the completion of the sale, the director now owns 33,291 shares of the company’s stock, valued at $2,682,921.69. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Michael E. Gioja sold 29,840 shares of the company’s stock in a transaction dated Tuesday, April 2nd. The stock was sold at an average price of $80.58, for a total transaction of $2,404,507.20. The disclosure for this sale can be found here. Insiders sold 135,127 shares of company stock valued at $11,173,791 in the last ninety days. Corporate insiders own 11.80% of the company’s stock.

A number of hedge funds have recently bought and sold shares of the stock. We Are One Seven LLC bought a new stake in Paychex in the fourth quarter worth about $25,000. Liberty Wealth Management LLC bought a new stake in Paychex in the fourth quarter worth about $25,000. FinTrust Capital Advisors LLC raised its position in Paychex by 64.9% in the first quarter. FinTrust Capital Advisors LLC now owns 310 shares of the business services provider’s stock worth $25,000 after acquiring an additional 122 shares in the last quarter. Glassman Wealth Services raised its position in Paychex by 125.0% in the first quarter. Glassman Wealth Services now owns 306 shares of the business services provider’s stock worth $25,000 after acquiring an additional 170 shares in the last quarter. Finally, TCI Wealth Advisors Inc. raised its position in Paychex by 404.8% in the first quarter. TCI Wealth Advisors Inc. now owns 318 shares of the business services provider’s stock worth $26,000 after acquiring an additional 255 shares in the last quarter. 68.97% of the stock is owned by institutional investors and hedge funds.

Shares of PAYX traded up $0.11 during midday trading on Friday, hitting $86.17. 1,377,629 shares of the stock traded hands, compared to its average volume of 1,862,242. Paychex has a 1-year low of $61.32 and a 1-year high of $87.75. The company has a market cap of $30.94 billion, a price-to-earnings ratio of 33.79, a price-to-earnings-growth ratio of 3.39 and a beta of 1.04. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.11 and a current ratio of 1.11.

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, May 30th. Investors of record on Wednesday, May 15th will be issued a $0.62 dividend. The ex-dividend date of this dividend is Tuesday, May 14th. This represents a $2.48 annualized dividend and a yield of 2.88%. This is an increase from Paychex’s previous quarterly dividend of $0.56. Paychex’s dividend payout ratio is presently 97.25%.

Paychex Company Profile

Paychex, Inc provides payroll, human resource (HR), retirement, 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.

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Earnings History and Estimates for Paychex (NASDAQ:PAYX)

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