Equities research analysts expect Automatic Data Processing (NASDAQ:ADP) to report earnings of $1.10 per share for the current fiscal quarter, according to Zacks. Eight analysts have made estimates for Automatic Data Processing’s earnings, with estimates ranging from $0.99 to $1.15. Automatic Data Processing posted earnings per share of $0.91 during the same quarter last year, which would suggest a positive year-over-year growth rate of 20.9%. The business is expected to announce its next quarterly earnings results before the market opens on Wednesday, October 31st.
According to Zacks, analysts expect that Automatic Data Processing will report full-year earnings of $5.17 per share for the current financial year, with EPS estimates ranging from $5.09 to $5.22. For the next year, analysts expect that the business will report earnings of $5.89 per share, with EPS estimates ranging from $5.69 to $6.06. Zacks’ EPS averages are a mean average based on a survey of sell-side research firms that that provide coverage for Automatic Data Processing.
Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, August 1st. The business services provider reported $0.92 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.90 by $0.02. The business had revenue of $3.32 billion during the quarter, compared to the consensus estimate of $3.29 billion. Automatic Data Processing had a return on equity of 50.17% and a net margin of 12.16%. The business’s quarterly revenue was up 8.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.66 EPS.
Several research analysts recently commented on the company. Jefferies Financial Group assumed coverage on Automatic Data Processing in a research note on Monday, October 1st. They issued a “hold” rating and a $160.00 price objective for the company. Moffett Nathanson assumed coverage on Automatic Data Processing in a research note on Thursday, October 4th. They issued a “buy” rating and a $180.00 price objective for the company. Zacks Investment Research downgraded Automatic Data Processing from a “hold” rating to a “sell” rating in a research note on Thursday, October 4th. Guggenheim assumed coverage on Automatic Data Processing in a research note on Monday, August 20th. They issued a “buy” rating and a $175.00 price objective for the company. Finally, BidaskClub raised Automatic Data Processing from a “buy” rating to a “strong-buy” rating in a research note on Wednesday, August 15th. One analyst has rated the stock with a sell rating, eight have issued a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company. The stock has a consensus rating of “Buy” and an average price target of $144.47.
Shares of ADP stock traded up $2.54 during trading hours on Friday, hitting $140.72. 2,445,527 shares of the company’s stock were exchanged, compared to its average volume of 2,160,850. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.05 and a quick ratio of 1.05. The company has a market cap of $65.90 billion, a price-to-earnings ratio of 32.35, a PEG ratio of 2.57 and a beta of 0.92. Automatic Data Processing has a fifty-two week low of $107.61 and a fifty-two week high of $153.51.
The business also recently announced a quarterly dividend, which was paid on Monday, October 1st. Shareholders of record on Friday, September 14th were paid a $0.69 dividend. This represents a $2.76 dividend on an annualized basis and a dividend yield of 1.96%. The ex-dividend date was Thursday, September 13th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 63.45%.
In other news, VP Brock Albinson sold 3,345 shares of the stock in a transaction on Tuesday, September 4th. The stock was sold at an average price of $144.35, for a total transaction of $482,850.75. Following the completion of the transaction, the vice president now directly owns 6,081 shares in the company, valued at approximately $877,792.35. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Michael C. Eberhard sold 9,100 shares of the stock in a transaction on Friday, September 21st. The stock was sold at an average price of $150.00, for a total value of $1,365,000.00. Following the transaction, the vice president now owns 48,468 shares of the company’s stock, valued at $7,270,200. The disclosure for this sale can be found here. Insiders sold a total of 15,919 shares of company stock valued at $2,351,933 over the last ninety days. Corporate insiders own 0.33% of the company’s stock.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. raised its position in Automatic Data Processing by 1.4% in the 2nd quarter. BlackRock Inc. now owns 29,370,904 shares of the business services provider’s stock valued at $3,939,812,000 after purchasing an additional 410,257 shares in the last quarter. Morgan Stanley raised its position in Automatic Data Processing by 11.7% in the 2nd quarter. Morgan Stanley now owns 7,671,784 shares of the business services provider’s stock valued at $1,029,094,000 after purchasing an additional 801,928 shares in the last quarter. Polen Capital Management LLC raised its position in Automatic Data Processing by 1.2% in the 2nd quarter. Polen Capital Management LLC now owns 7,146,946 shares of the business services provider’s stock valued at $958,691,000 after purchasing an additional 84,493 shares in the last quarter. Fundsmith Equity Fund L.P. acquired a new stake in Automatic Data Processing in the 2nd quarter valued at about $776,199,000. Finally, Schwab Charles Investment Management Inc. raised its position in Automatic Data Processing by 2.4% in the 2nd quarter. Schwab Charles Investment Management Inc. now owns 2,797,951 shares of the business services provider’s stock valued at $375,318,000 after purchasing an additional 65,759 shares in the last quarter. Institutional investors and hedge funds own 77.73% of the company’s stock.
Automatic Data Processing Company Profile
Automatic Data Processing, Inc provides business process outsourcing services worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers various human resources (HR) outsourcing and technology-based human capital management solutions.
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