Welcome to our dedicated page for Paychex news (Ticker: PAYX), a resource for investors and traders seeking the latest updates and insights on Paychex stock.
Paychex, Inc. (NASDAQ: PAYX) is a prominent provider of integrated human capital management solutions, specializing in payroll, human resources, retirement, and insurance services. Established in 1979, Paychex boasts over 45 years of industry expertise, serving more than 740,000 clients across over 100 locations in the United States. The company’s innovative Software-as-a-Service (SaaS) technology and mobility platform, combined with dedicated personal service, empower small and medium-sized business owners to focus on growth and efficient business management.
Paychex offers a broad spectrum of human capital management (HCM) services, including payroll processing, benefits administration, time and attendance software, human resources outsourcing, and insurance agency services. This extensive range ensures that clients receive comprehensive support tailored to their specific needs.
One of the company’s recent achievements includes recognition by BetterInvesting Magazine as the “Stock to Study” for the June/July 2024 issue, highlighting its solid financial performance and promising investment potential. Paychex continues to prioritize innovation and customer service, maintaining its position as a reliable partner for businesses across the nation.
With a commitment to delivering exceptional value, Paychex effectively pays one out of every 12 private-sector employees in the U.S. This substantial impact on the American workforce underscores the company’s crucial role in the market.
Paychex’s core mission is to simplify complex payroll and HCM tasks, allowing business owners to concentrate on what truly matters: their business growth and success. As the company continues to evolve, it remains dedicated to advancing its technology and enhancing its service offerings to meet the ever-changing needs of its clients.
Paychex, Inc. has reached a significant milestone in its 401(k) business, now administering plans for over 120,000 employers as of May 31, 2024. The company has surpassed $51 billion in assets under administration. Notably, the Paychex Pooled Employer Plan (PEP), launched in 2021, has been adopted by 34,000 employers with more than $1 billion in plan assets.
Paychex offers integrated 401(k) solutions with its Paychex Flex® HR suite, providing cost-effective retirement benefits to small and mid-sized businesses. The company's offerings include accessible investment management tools, fee transparency, and investment flexibility. Paychex aims to address the retirement savings crisis in America by providing affordable solutions to companies, enabling 1.5 million Americans to save for their future.
Paychex has been named to Selling Power's 2024 '60 Best Companies to Sell For' list for the 11th time. This recognition highlights Paychex's commitment to fostering a top-tier sales organization and delivering exceptional value to customers and employees. The company's sales team leverages advanced technologies and strong cross-departmental partnerships to optimize efficiency and respond to market shifts.
The ranking methodology evaluates companies based on factors including company overview, compensation and benefits, hiring and training practices, diversity and inclusion efforts, and AI incorporation in sales processes. Mark Bottini, Senior VP of Sales at Paychex, emphasized the company's focus on equipping sales professionals with unmatched tools, development opportunities, and solutions to help them reach their full potential.
Today, the Board of Directors of Paychex declared a regular quarterly cash dividend of $0.98 per share. The dividend will be payable on August 29, 2024, to shareholders of record as of August 8, 2024.
The latest Paychex Small Business Employment Watch reveals that U.S. small businesses continued adding jobs in June, albeit slower than in May. Small business hourly earnings growth remained steady at 3.16% for the month.
The national jobs index for June was 100.29, indicating employment gains but at a slower rate compared to May's 100.58 and June 2023's 101.37. The state of California has seen a three-month consecutive decline below 100, indicating job losses, with the Leisure and Hospitality sector particularly affected. Conversely, Education and Health Services, along with Professional and Business Services, saw an uptick in small business employment growth.
Weekly earnings growth improved for the third straight month, albeit marginally, at 2.96%. However, challenges such as complex regulations, a tight labor market, and inflationary pressures continue to impact certain regions and industries.
Paychex has reported its fourth-quarter and full-year 2024 results, revealing solid financial performance. Total revenue grew by 5% year-over-year to $5.3 billion, with a 7% increase in operating income to $2.2 billion. Diluted EPS rose 9% to $4.67, while adjusted diluted EPS saw an 11% boost to $4.72. For Q4 alone, revenue was $1.3 billion, a 5% increase from the previous year, and operating income grew 6% to $481.8 million. Adjusted diluted EPS for Q4 rose 15% to $1.12.
The company benefited from higher interest on funds held for clients, which increased 54% to $38.2 million. Paychex also initiated cost optimization efforts, leading to a 5% increase in total expenses to $813.3 million for Q4. The company announced a fiscal 2025 outlook with expected revenue growth of 4.0%-5.5% and adjusted diluted EPS growth of 5%-7%.
Throughout fiscal 2024, Paychex maintained a strong cash position with $1.6 billion in cash and corporate investments and generated $1.9 billion in cash flow from operations. Dividends paid amounted to $3.65 per share, totaling $1.3 billion, with an additional $169.2 million spent on share repurchases.
Paychex (Nasdaq: PAYX) is set to release its fiscal 2024 fourth-quarter and full-year financial results on June 26, 2024. The announcement will be made via Business Wire before the financial markets open. A conference call to review these results is scheduled for 9:30 a.m. ET on the same day. The call will feature insights from John Gibson, President and CEO, and Bob Schrader, Senior Vice President and CFO. The live broadcast will be accessible online through the Paychex Investor Relations portal, with an archived replay available for 90 days.
According to the May report from the Paychex Small Business Employment Watch, the Small Business Jobs Index rose by 0.46 points to 100.58, marking the largest increase since January 2022. However, hourly earnings growth decelerated to 3.13%, the lowest since June 2021. Weekly earnings growth saw a positive uptick to above 3% for the first time since January 2024, driven by stabilized weekly working hours. The Midwest led regional growth with a 0.61-point increase, while the South maintained the highest employment growth rate at 101.05. The Leisure and Hospitality sector saw a notable 0.77-point rise. Despite these gains, challenges such as inflation, access to capital, and labor shortages persist.
Paychex Flex® has been awarded the 2024 HR Tech Award for Best Core HR/Workforce Solution by Lighthouse Research & Advisory Firm for the fifth time. The SaaS solution was recognized for simplifying HR tasks for small businesses, saving clients time and offering educational resources. Paychex continues to provide digital HR solutions and advisory services to streamline HR, payroll, and benefits management.
Paychex, Inc., a leading provider of human capital management software solutions, announced a 10% increase in its quarterly cash dividend to $0.98 per share. The Board of Directors approved the increase based on strong financial position and healthy free cash flow. The dividend will be payable on May 30, 2024, to shareholders of record as of May 10, 2024.
In April 2024, according to the Paychex Small Business Employment Watch, hourly earnings growth for U.S. small business workers increased to 3.34%, ending a nearly two-year deceleration trend. However, job growth slowed, with U.S. small businesses adding jobs at a slower pace. Weekly hours worked for employees also decreased for the 13th consecutive month. The Small Business Jobs Index stood at 100.12, indicating positive job gains but down from the previous year.
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