Paychex (PAYX) earnings: what should you expect?

9:49 am ET, 18 Dec 2018

Paychex, Inc. (PAYX) shares are trading at $65.14, up 0.30%. The company is announcing its quarterly earnings results on Wednesday before the market opens. What's driving Paychex stock price? What's PAYX stock price forecast?

Paychex provides payroll, human resource, and insurance services to small and medium-sized businesses. The company has decided to buy an outsourcing firm Oasis for $1.2 billion. Paychex sees the potential for revenue and cost synergies from this transaction.

Investors are showing interest in the company since it an asset-light company. On the other hand, a few bearish investors worry about slowing global economy which could impact the company’s earnings. Last quarter’s revenue rose 8.8% to $862.80 million and earnings per share came at 67 cents compared to 58 cents for the same period last year.

Second-quarter FY19 results will be released before market open on December 19, 2018.  Analysts expect the company to earn 63 cents per share on revenue of $858.80 million. The company beat analysts’ estimates three times in the previous four quarters.

What is the sentiment towards the PAYX stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Paychex, Inc. (PAYX) returned +0.24%.

Paychex, Inc. (PAYX) average analyst price target ($73.79) is 8.32% above its current price ($68.12).

For the latest price and information on Paychex, Inc., please visit Finstead and search for "PAYX price" or "PAYX news".

Is there more upside for Paychex (PAYX)?

4:17 am ET, 02 Oct 2018

Paychex, Inc. (PAYX) shares are trading at $73.80. The company is announcing its quarterly earnings results on Tuesday before the market opens. What's driving PAYX stock price? What's PAYX stock price forecast?

Paychex provides payroll, human resources, and other related services to mid-sized businesses in the U.S. and Europe.  Lately, the stock has been on a tear; it yielded a 23% return in the past year. 

Investors are bullish on the company because it provides profitable payroll solutions across many industries. On the other hand, some investors worry about the prospect for PAYX because of the company’s decelerating revenue growth. Last quarter’s revenue grew 9% to $871.1 million and earnings per share came at $0.61 compared to $0.54 for the same period last year.

The first-quarter fiscal year 2019 results will be released before market open on October 02, 2018. Analysts expect the company to earn $0.65 per share on revenue of $850.63 million. The company beat analyst revenue estimates in the previous three quarters, with in-line EPS estimates.

What is the sentiment towards the PAYX stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is positive;
  • The long-term sentiment (9-12 months) is positive. 

Over the last month, Paychex, Inc. (PAYX) returned +3.78%.

Paychex, Inc. (PAYX) average analyst price target ($70.31) is -6.56% below its current price ($75.25).

For the latest price and information on Paychex, Inc., please visit Finstead and search for "PAYX price" or "PAYX news".

Paychex, Inc. (PAYX) Stock Guide

Updated at: 9:52 am ET, 18 Sep 2020

Before we start: if you're looking for PAYX stock price, you can quickly find it out by visiting Finny and typing "PAYX quote". If you're looking for a quick scoop on PAYX stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "PAYX". You'll get all this info in one place. Or you can just type "PAYX news" to get the latest stock news.

Looking to buy or sell Paychex, Inc. (PAYX)? Interested in getting the full scoop on PAYX, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this PAYX stock guide, we'll address key questions about PAYX, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are PAYX earnings?
2. What is PAYX dividend?
3. What is PAYX dividend yield?
4. What is PAYX stock forecast (i.e., prediction)?
5. PAYX buy or sell? What is PAYX Finny Score?
6. What are the reasons to buy PAYX? Why should I buy PAYX stock?
7. What are the reasons to sell PAYX? Why should I sell PAYX stock?
8. What are PAYX key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are PAYX earnings?

PAYX trailing 12-month earnings per share (EPS) is $3.04.

2. What is PAYX dividend?

PAYX forward dividend is $2.48.

3. What is PAYX dividend yield?

PAYX forward dividend yield is 3.24%.

Analyst Predictions

4. What is PAYX stock forecast (i.e., prediction)?

Based on PAYX analyst price targets, PAYX stock forecast is $74.18 (for a year from now). That means the average analyst price target for PAYX stock is $74.18. The prediction is based on 19 analyst estimates.

The low price target for PAYX is $63.00, while the high price target is $85.00.

PAYX analyst rating is Hold.

Analysis

5. PAYX buy or sell? What is PAYX Finny Score?

#{finnyScore:43}Our quantitative analysis shows 3 reasons to buy and 4 reasons to sell PAYX, resulting in Finny Score of 43.

6. What are the reasons to buy PAYX? Why should I buy PAYX stock?

Here are the reasons to buy PAYX stock:

  • Paychex's focus on smaller businesses gives it greater pricing power, resulting in better margins.
  • The company can further penetrate its captive customer base through the cross-selling of workers' comp offerings and retirement plans.
  • Paychex has routinely returned more than 80% of its earnings to shareholders in the form of dividends.
  • PAYX profitability is improving. The YoY profit margin change was 1.68 percentage points. See PAYX profitability chart.
  • PAYX forward dividend yield is 3.24%, higher than the industry (0.39%) and sector (0.49%) forward dividend yields. See PAYX forward dividend chart.
  • PAYX cash to debt ratio is 1.00, higher than the average industry (0.12) and sector (0.12) cash to debt ratio. See PAYX cash to debt chart.

7. What are the reasons to sell PAYX? Why should I sell PAYX stock?

Let's look at the reasons to sell PAYX stock (i.e., the bear case):

  • The company will not benefit from increasing employment, as the unemployment rate is already low.
  • Paychex has already seen much of the benefit from the Affordable Care Act, and so growth in HR outsourcing will likely slow.
  • The acquisition of Advance Partners is outside the company's core competencies.
  • PAYX stock price ($79.54) is close to the 52-week high ($80.42). Perhaps now is a good time to sell? See PAYX price chart.
  • PAYX quarterly revenue growth was -6.70%, lower than the industry and sector average revenue growth (0.94% and 1.01%, respectively). See PAYX revenue growth chart.
  • PAYX average analyst price target ($74.18) is below its current price ($79.54). See PAYX price target chart.
  • PAYX short interest (days to cover the shorts) ratio is 6.23. The stock garners more short interest than the average industry, sector or S&P 500 stock. See PAYX short interest ratio chart.

Key Stats

8. What are PAYX key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for PAYX:

Metrics PAYX
Price $77.73
Average Price Target / Upside $74.18 / -4.57%
Average Analyst Rating Hold
Forward Dividend Yield 3.24%
Industry Business Services
Sector Industrials
Number of Employees 14,600
Market Cap $27.36B
Forward P/E Ratio 25.42
Price/Book Ratio 6.77
Revenue (TTM) $4.04B
YoY Quarterly Revenue Growth -6.70%
Profit Margin 27.18%

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