Automatic Data Processing (NASDAQ:ADP) Releases Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Automatic Data Processing (NASDAQ:ADP) announced its quarterly earnings results on Wednesday. The business services provider reported $2.88 EPS for the quarter, topping the consensus estimate of $2.79 by $0.09, Briefing.com reports. The business had revenue of $5.30 billion for the quarter, compared to analyst estimates of $5.22 billion. Automatic Data Processing had a return on equity of 95.22% and a net margin of 19.14%. The company’s quarterly revenue was up 7.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.52 EPS. Automatic Data Processing updated its FY24 guidance to $9.05-$9.22 EPS and its FY 2024 guidance to 9.050-9.220 EPS.

Automatic Data Processing Stock Down 2.2 %

NASDAQ ADP traded down $5.46 during trading hours on Thursday, hitting $241.87. The company had a trading volume of 405,395 shares, compared to its average volume of 1,783,091. Automatic Data Processing has a fifty-two week low of $205.53 and a fifty-two week high of $256.84. The company has a market capitalization of $99.36 billion, a price-to-earnings ratio of 28.27, a P/E/G ratio of 2.27 and a beta of 0.78. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.01 and a quick ratio of 1.01. The firm’s 50 day moving average is $246.16 and its 200 day moving average is $239.11.

Automatic Data Processing Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, July 1st. Investors of record on Friday, June 14th will be issued a $1.40 dividend. The ex-dividend date of this dividend is Friday, June 14th. This represents a $5.60 annualized dividend and a yield of 2.32%. Automatic Data Processing’s dividend payout ratio is currently 65.19%.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 863 shares of the company’s stock in a transaction dated Tuesday, February 6th. The shares were sold at an average price of $250.00, for a total value of $215,750.00. Following the completion of the transaction, the vice president now directly owns 8,285 shares of the company’s stock, valued at approximately $2,071,250. The transaction was disclosed in a filing with the SEC, which is accessible through this link. In other news, VP Joseph Desilva sold 1,904 shares of the stock in a transaction dated Thursday, February 22nd. The shares were sold at an average price of $255.00, for a total transaction of $485,520.00. Following the transaction, the vice president now owns 17,179 shares of the company’s stock, valued at $4,380,645. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP David Kwon sold 863 shares of the stock in a transaction dated Tuesday, February 6th. The stock was sold at an average price of $250.00, for a total transaction of $215,750.00. Following the transaction, the vice president now directly owns 8,285 shares in the company, valued at approximately $2,071,250. The disclosure for this sale can be found here. In the last three months, insiders sold 3,829 shares of company stock worth $965,274. Corporate insiders own 0.26% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on ADP. Royal Bank of Canada reaffirmed a “sector perform” rating and issued a $267.00 target price on shares of Automatic Data Processing in a research note on Thursday, February 1st. Bank of America raised Automatic Data Processing from an “underperform” rating to a “neutral” rating and upped their target price for the company from $217.00 to $243.00 in a research note on Wednesday, January 17th. StockNews.com lowered Automatic Data Processing from a “buy” rating to a “hold” rating in a research note on Tuesday, March 19th. Barclays upped their target price on Automatic Data Processing from $280.00 to $282.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Evercore ISI upped their target price on Automatic Data Processing from $227.00 to $235.00 and gave the company an “underperform” rating in a research note on Tuesday, March 26th. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $258.55.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.