NEW YORK (TheStreet) -- Shares of Paychex are slightly higher by 0.04% to $47.20 in morning trading Thursday, one day ahead of its scheduled fiscal 2015 second quarter earnings release before the markets open on Friday. For the quarter, analysts are expecting earnings of 46 cents per share on revenue of $676.61 million. Last quarter Paychex reported better than expected results with both revenues and earnings higher on a year-over-year basis, boosted by growth across all segments. The company reported earnings of 43 cents per share on $610.5 million in revenue for its fiscal 2015 first quarter. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Rochester, NY-based Paychex is a provider of payroll, human resource, insurance, and benefits outsourcing solutions for small to medium sized businesses. Separately, TheStreet Ratings team rates PAYCHEX INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation: "We rate PAYCHEX INC (PAYX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 6.3%. Since the same quarter one year prior, revenues slightly increased by 8.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. PAYCHEX INC has improved earnings per share by 6.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PAYCHEX INC increased its bottom line by earning $1.71 versus $1.57 in the prior year. This year, the market expects an improvement in earnings ($1.85 versus $1.71). The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the IT Services industry average. The net income increased by 5.2% when compared to the same quarter one year prior, going from $162.80 million to $171.30 million. The gross profit margin for PAYCHEX INC is currently very high, coming in at 74.84%. Regardless of PAYX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PAYX's net profit margin of 25.68% significantly outperformed against the industry. PAYX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.17 is very weak and demonstrates a lack of ability to pay short-term obligations. You can view the full analysis from the report here: PAYX Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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