Zacks: Analysts Expect Paychex, Inc. (NASDAQ:PAYX) to Post $0.95 Earnings Per Share

Equities analysts expect that Paychex, Inc. (NASDAQ:PAYX) will report earnings of $0.95 per share for the current quarter, according to Zacks. Seven analysts have issued estimates for Paychex’s earnings. The lowest EPS estimate is $0.92 and the highest is $0.97. Paychex posted earnings per share of $0.89 during the same quarter last year, which would indicate a positive year over year growth rate of 6.7%. The firm is scheduled to announce its next quarterly earnings report on Wednesday, March 25th.

On average, analysts expect that Paychex will report full-year earnings of $3.11 per share for the current financial year, with EPS estimates ranging from $3.10 to $3.13. For the next financial year, analysts expect that the company will report earnings of $3.34 per share, with EPS estimates ranging from $3.32 to $3.37. Zacks Investment Research’s EPS averages are a mean average based on a survey of analysts that that provide coverage for Paychex.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings results on Wednesday, December 18th. The business services provider reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.68 by $0.02. Paychex had a net margin of 26.72% and a return on equity of 41.21%. The company had revenue of $990.70 million for the quarter, compared to analyst estimates of $988.26 million. During the same quarter in the previous year, the firm posted $0.65 earnings per share. The company’s quarterly revenue was up 15.3% compared to the same quarter last year.

Several research firms have recently issued reports on PAYX. Jefferies Financial Group reissued a “hold” rating and issued a $84.00 price target on shares of Paychex in a research report on Wednesday, December 18th. BidaskClub raised shares of Paychex from a “sell” rating to a “hold” rating in a research report on Friday, February 21st. Robert W. Baird boosted their price target on shares of Paychex from $83.00 to $87.00 and gave the company a “neutral” rating in a research report on Thursday, December 19th. Finally, Citigroup raised shares of Paychex from a “neutral” rating to a “buy” rating and boosted their price target for the company from $84.00 to $97.00 in a research report on Tuesday, January 14th. Three analysts have rated the stock with a sell rating, seven have issued a hold rating and three have given a buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus price target of $84.50.

Shares of NASDAQ PAYX traded down $3.38 during midday trading on Friday, hitting $78.90. The company’s stock had a trading volume of 2,689,658 shares, compared to its average volume of 1,405,863. The stock has a fifty day moving average price of $87.77 and a 200 day moving average price of $84.66. Paychex has a one year low of $75.10 and a one year high of $90.54. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.35. The firm has a market capitalization of $28.24 billion, a price-to-earnings ratio of 26.39, a P/E/G ratio of 3.84 and a beta of 0.88.

The company also recently announced a quarterly dividend, which was paid on Thursday, February 20th. Investors of record on Monday, February 3rd were issued a dividend of $0.62 per share. This represents a $2.48 dividend on an annualized basis and a yield of 3.14%. The ex-dividend date was Friday, January 31st. Paychex’s dividend payout ratio (DPR) is presently 87.32%.

In other news, VP Michael E. Gioja sold 17,881 shares of the stock in a transaction on Monday, January 13th. The shares were sold at an average price of $85.81, for a total value of $1,534,368.61. Following the transaction, the vice president now owns 70,023 shares of the company’s stock, valued at approximately $6,008,673.63. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, VP Laurie L. Zaucha sold 19,579 shares of the stock in a transaction on Wednesday, January 22nd. The stock was sold at an average price of $89.72, for a total transaction of $1,756,627.88. Following the completion of the transaction, the vice president now directly owns 48,086 shares in the company, valued at approximately $4,314,275.92. The disclosure for this sale can be found here. Insiders have sold a total of 87,823 shares of company stock worth $7,609,568 in the last ninety days. 11.70% of the stock is currently owned by insiders.

Large investors have recently modified their holdings of the company. Cedar Mountain Advisors LLC bought a new position in shares of Paychex in the 4th quarter worth $25,000. Stonebridge Financial Planning Group LLC bought a new position in shares of Paychex in the 4th quarter worth $26,000. Quantum Capital Management bought a new position in shares of Paychex in the 3rd quarter worth $26,000. Laurel Wealth Advisors LLC bought a new position in shares of Paychex in the 4th quarter worth $28,000. Finally, Benjamin Edwards Inc. increased its holdings in shares of Paychex by 58.2% in the 3rd quarter. Benjamin Edwards Inc. now owns 348 shares of the business services provider’s stock worth $29,000 after buying an additional 128 shares during the last quarter. 67.84% of the stock is currently owned by hedge funds and other institutional investors.

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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