Latest news with #Paycor
Yahoo
14-07-2025
- Business
- Yahoo
Paycor Earnings: What To Look For From PYCR
Online payroll and human resource software provider Paycor (NASDAQ:PYCR) is expected to be reporting results this Tuesday after the bell. Here's what to look for. Paycor beat analysts' revenue expectations by 1.8% last quarter, reporting revenues of $180.4 million, up 13.1% year on year. It was a satisfactory quarter for the company. Is Paycor a buy or sell going into earnings? Read our full analysis here, it's free. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Paycor has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.4% on average. With Paycor being the first among its peers to report earnings this season, we don't have anywhere else to look to get a hint at how this quarter will unravel for finance and hr software stocks. However, investors in the segment have had steady hands going into earnings, with share prices flat over the last month. during the same time. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-07-2025
- Business
- Yahoo
Paycor Earnings: What To Look For From PYCR
Online payroll and human resource software provider Paycor (NASDAQ:PYCR) is expected to be reporting results this Tuesday after the bell. Here's what to look for. Paycor beat analysts' revenue expectations by 1.8% last quarter, reporting revenues of $180.4 million, up 13.1% year on year. It was a satisfactory quarter for the company. Is Paycor a buy or sell going into earnings? Read our full analysis here, it's free. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Paycor has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.4% on average. With Paycor being the first among its peers to report earnings this season, we don't have anywhere else to look to get a hint at how this quarter will unravel for finance and hr software stocks. However, investors in the segment have had steady hands going into earnings, with share prices flat over the last month. during the same time. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
30-06-2025
- Business
- Forbes
A Rebound For Paychex Stock?
CHONGQING, CHINA - JUNE 27: In this photo illustration, the logo of Paychex, Inc. is displayed on a ... More smartphone screen with a blurred version of the company's branding in the background on June 27, 2025 in Chongqing, China. (Photo illustration by) Paychex (NASDAQ:PAYX) experienced a decline of nearly 10% in Wednesday's trading session following the payroll processing firm's announcement of its Q4 FY'25 results (the fiscal year ends in May). Although revenue grew by 10% year-over-year, reaching $1.43 billion, and adjusted earnings increased by 6% to $1.19 per share, the FY'26 guidance provided by the company seemed to disappoint investors. Paychex anticipates revenue growth of 16.5% to 18.5% for the upcoming year, which is slightly below market consensus. The firm is also encountering several challenges, such as integration issues linked to the recent acquisition of Paycor, which was finalized in April, alongside rising interest costs from the debt taken on to facilitate the deal. Moreover, the conclusion of the Employee Retention Tax Credit (ERTC) program has also had a negative effect on revenue growth to some degree. The ERTC was a tax incentive during the Covid-19 pandemic that increased the demand for payroll tax credit services, as businesses required assistance to claim the credit. Despite facing certain challenges, the Paycor acquisition is expected to yield significant long-term advantages. It broadens Paychex's customer base beyond its traditional small and mid-sized business clientele, introducing a number of larger clients. Over time, it is also anticipated that cost and revenue synergies will be realized, ultimately enhancing overall profitability. Nevertheless, we have concerns regarding PAYX stock, as its current valuation appears somewhat inflated. We have reached this conclusion by assessing the current valuation of PAYX stock in relation to its operating performance over recent years, as well as its current and historical financial status. Our evaluation of Paychex against key metrics including Growth, Profitability, Financial Stability, and Downturn Resilience indicates that the company boasts a strong operating performance and financial health, as outlined below. Nonetheless, if you are looking for growth opportunities with lower volatility compared to individual stocks, the Trefis High Quality portfolio offers an alternative – having outperformed the S&P 500 and produced returns exceeding 91% since its inception. How Does Paychex's Valuation Compare with The S&P 500? Based on the price you pay per dollar of sales or profit, the PAYX stock appears to be expensive when compared to the wider market. • Paychex has a price-to-sales (P/S) ratio of 10.1 compared to a value of 3.1 for the S&P 500 • Furthermore, the firm's price-to-free cash flow (P/FCF) ratio stands at 34.3 versus 20.9 for the S&P 500 • Additionally, it displays a price-to-earnings (P/E) ratio of 31.6 in contrast to the benchmark's 26.9 How Have Paychex's Revenues Performed in Recent Years? Paychex's Revenues have seen modest growth over recent years. • Paychex has experienced an average annual growth rate of 6.6% over the past 3 years (compared to an increase of 5.5% for the S&P 500) • Its revenues have expanded by 4.3% from $5.2 billion to $5.4 billion in the last year (contrasted with a growth of 5.5% for the S&P 500) • Additionally, its quarterly revenues rose by 4.8% to $1.5 billion in the latest quarter, up from $1.4 billion the previous year (matching the 4.8% improvement for the S&P 500) How Profitable Is Paychex? Paychex's profit margins are significantly higher than those of most companies within the Trefis coverage universe. • Paychex's Operating Income for the last four quarters was $2.3 billion, representing a notably high Operating Margin of 41.5% • Paychex's Operating Cash Flow (OCF) during this timeframe was $1.8 billion, indicating a high OCF Margin of 32.7% (in comparison to 14.9% for the S&P 500) • Over the last four quarters, Paychex's Net Income stood at $1.7 billion – signifying a considerably high Net Income Margin of 32.0% (versus 11.6% for the S&P 500) Is Paychex Financially Stable? The balance sheet of Paychex appears very robust. • At the close of the most recent quarter, Paychex's debt was $864 million, while its market capitalization is $50 billion (as of 6/25/2025). This results in a very strong Debt-to-Equity Ratio of 1.6% (compared to 19.4% for the S&P 500). [Note: A lower Debt-to-Equity Ratio is preferred] • Cash (including cash equivalents) constitutes $1.6 billion of the total $11 billion in Total Assets held by Paychex. This leads to a strong Cash-to-Assets Ratio of 14.3% How Resilient Is PAYX Stock In A Downturn? PAYX stock has performed slightly worse than the benchmark S&P 500 index during some recent downturns. Concerned about how a market crash would affect PAYX stock? Our dashboard How Low Can Paychex Stock Go In A Market Crash? provides an in-depth analysis of the stock's performance during and after previous market crashes. • PAYX stock diminished by 25.4% from a peak of $141.23 on April 6, 2022, to $105.37 on April 26, 2023, compared to a peak-to-trough decline of 25.4% for the S&P 500 • The stock completely recovered to its pre-crisis peak by October 14, 2024 • Since then, the stock has risen to a high of $159.78 on June 8, 2025, and is currently trading at around $140. • PAYX stock experienced a decline of 44.2% from a high of $90.23 on February 20, 2020, to $50.39 on March 23, 2020, contrasted with a peak-to-trough setback of 33.9% for the S&P 500 • The stock fully rebounded to its pre-crisis peak by November 9, 2020 • PAYX stock fell 55.9% from its peak of $46.31 on August 8, 2007, to $20.43 on March 9, 2009, as compared to a peak-to-trough decline of 56.8% in the S&P 500 • The stock fully restored to its pre-crisis peak by October 31, 2014 Putting All The Pieces Together: Implications for PAYX Stock In summary, Paychex stock demonstrates strong fundamentals, boasting reasonable growth, robust profitability, and financial stability. However, the company's elevated valuation and slightly lackluster downturn resilience should give investors some cause for concern. The high valuation of PAYX stock restricts its upside potential in the short to medium term. As an alternative, the Trefis Reinforced Value (RV) Portfolio, which has surpassed its all-cap stocks benchmark (a mix of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices), has generated strong returns for investors. Why is this the case? The quarterly rebalancing of the large-, mid-, and small-cap RV Portfolio stocks offers a flexible method to capitalize on favorable market conditions while minimizing losses when the market declines, as illustrated in the RV Portfolio performance metrics.
Yahoo
28-06-2025
- Business
- Yahoo
Paychex shares recoup a bit; CEO comments about economy; analysts weigh in
Paychex shares recoup a bit; CEO comments about economy; analysts weigh in originally appeared on TheStreet. At Paychex () there's no such thing as a free toaster. That may sound confusing, but President and Chief Executive John Gibson brought it all together during the payroll- and human-resources-services provider's fiscal fourth-quarter earnings call. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰 "I've said it multiple times: We're going to continue to be disciplined about growth," he told analysts on June 25. "That client number can be whatever you want it to be if you're willing to spend more than the lifetime value of the customer to acquire the customer.""And we're not going to go crazy with promotions," he added. "We're not going to give away toasters and other gadgets to try to accelerate a number that you're going to add a client that you have to service. We're going to continue to be aggressive in driving client growth, but we're going to continue to also be Paychex." Gibson commented on a tough day for Paychex, which was the worst-performing stock in the S&P 500 after the company missed Wall Street's sales expectations and trimmed its full-year forecasts. The company in April closed the acquisition of human-capital-management-software maker Paycor for $4.1 billion cash. Gibson told analysts that "all of the changes that we wanted to make we made in the fourth quarter." "And we made a strategic decision that given the distractions that were already out there, with Liberation Day and everything else in the marketplace, that now was the time to go ahead and move as quickly as we could to get everything done," he said. April 2 was what President Donald Trump called Liberation Day, his reveal of his tariff policy agenda.."We certainly could have done it at a different pace that would have dragged it potentially into the first quarter of this fiscal year, but we made an election to get all of it out of the way," he explained. Turning to the economy, Gibson said the company was seeing a mix of both optimism and uncertainty within the market and its client base. "Many businesses are frozen as they wait for more clarity about a number of macro issues such as tariffs, inflation and taxes," he said. "The hard data continues to indicate that small businesses remain fundamentally healthy despite the headlines." A Paychex small business report showed stable employment levels with moderation in hourly wage inflation in recent months. "Our data does not currently show any signs of recession," the executive said. "We also see our interactions in the market that the uncertainty is prompting businesses to exercise caution when making decisions and being cautious about how much they are spending on products and services." He noted that Paychex in fiscal Q4 had also seen bankruptcies and financial distress increase in the market and in its client base. "Many businesses, I think, on the edge of failure may have decided not to fight that new headwinds they see in front of them," he said. "We also saw losses due to increases in business combinations and mergers increase more than typical." "We will continue to monitor the hard data and trends in the market and take the appropriate steps to position Paychex to win in any market conditions," he said. After the drop on June 25, Paychex shares were off 1.6% in 2025 and up 17.5% from a year earlier. At last check they were up 1.6% at $140.12. Following the Paychex earnings release, UBS cut its price target on Paychex to $145 from $155 and affirmed a neutral rating on the shares, according the The Fly. A "lackluster" fiscal 2026 should keep Paychex stock range-bound, UBS said. Stifel lowered its price target on Paychex to $152 from $156, while maintaining a hold rating, stating that "confusion" surrounding fiscal 2026 guidance is "more impactful than any fundamental shifts." Last year's fiscal Q4 annual price increase was instituted earlier than historical practice, which distorts the comparisons, Stifel said. The investment firm said that management reported some weakening data points, but Stifel views the installed base as stable and see no signs of pending pared its target on Paychex to $140 from $155 and also affirmed a hold rating. The Q4 results disappointed largely due to slower growth in organic Management Solutions revenue. Management cited multiple reasons including distractions related to integrating Paycor, Jefferies said. However, the investment firm added, while the shares might drop further, the large post-print move and easier setup likely creates a floor against material near-term shares recoup a bit; CEO comments about economy; analysts weigh in first appeared on TheStreet on Jun 26, 2025 This story was originally reported by TheStreet on Jun 26, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
Why Paychex Stock Fell 10% This Morning
Paychex stock dropped as much as 10% after its Q4 2025 earnings report. Results matched analyst expectations, but the company's guidance was mixed. The recent Paycor buyout is adding new customers, but the integration may be off to a slow start. 10 stocks we like better than Paychex › Shares of Paychex (NASDAQ: PAYX) fell as much as 9.9% on Wednesday morning, tripped up by an unimpressive earnings report. The payroll processing services expert's stock recovered slightly to a 7.6% drop as of 12:20 p.m. ET. In the fourth quarter of fiscal year 2025, Paychex saw revenues rise 10% year over year to $1.43 billion. Adjusted earnings ticked 6.3% higher, landing at $1.19 per diluted share. The results were in line with the consensus analyst estimates, but management's guidance for the next fiscal year was a mixed bag. At the midpoint of each guidance range, Paychex projected full-year earnings 2% above the current analyst view, while the revenue target stopped 0.8% below Wall Street's consensus. The surprisingly modest revenue target suggests that Paychex may see a smaller benefit than expected from the recently closed Paycor buyout. So the Paycor integration may be off to a somewhat rocky start, but it still looks like a good move. This deal expanded Paychex's market reach from its traditional focus on small and medium-sized businesses, as Paycor brought in a robust roster of larger clients. If nothing else, Paychex should see synergies develop over time, as existing customers with growing payroll and HR service needs are more likely to stick with the provider they already know. Paychex stock hovered in a reasonable valuation range both before and after Wednesday's price drop. Whether you liked the stock yesterday or not, this report shouldn't change your analysis a lot. Before you buy stock in Paychex, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Paychex wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Paychex Stock Fell 10% This Morning was originally published by The Motley Fool
