Automatic Data Processing (NASDAQ:ADP) Releases Earnings Results, Beats Estimates By $0.03 EPS

Automatic Data Processing (NASDAQ:ADP) posted its quarterly earnings data on Wednesday. The business services provider reported $2.09 EPS for the quarter, beating analysts’ consensus estimates of $2.06 by $0.03, Briefing.com reports. Automatic Data Processing had a net margin of 19.54% and a return on equity of 89.20%. The company had revenue of $4.80 billion for the quarter, compared to analyst estimates of $4.74 billion. During the same period in the prior year, the firm posted $1.89 EPS. The company’s quarterly revenue was up 7.2% on a year-over-year basis. Automatic Data Processing updated its FY25 guidance to $9.91-$10.10 EPS and its FY 2025 guidance to 9.910-10.100 EPS.

Automatic Data Processing Stock Up 0.8 %

Shares of ADP traded up $2.22 during trading hours on Friday, reaching $263.52. 2,310,606 shares of the stock traded hands, compared to its average volume of 1,644,141. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.66. The company has a market cap of $107.86 billion, a price-to-earnings ratio of 29.41, a PEG ratio of 2.72 and a beta of 0.78. Automatic Data Processing has a 52 week low of $205.53 and a 52 week high of $269.49. The stock has a fifty day simple moving average of $245.11 and a 200 day simple moving average of $245.77.

Analyst Upgrades and Downgrades

ADP has been the subject of several research analyst reports. Bank of America lifted their price objective on Automatic Data Processing from $250.00 to $267.00 and gave the stock a “neutral” rating in a research report on Thursday. TD Cowen dropped their price target on Automatic Data Processing from $253.00 to $251.00 and set a “hold” rating on the stock in a research note on Thursday, May 2nd. StockNews.com lowered shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a research note on Tuesday, July 2nd. Royal Bank of Canada reissued a “sector perform” rating and set a $267.00 target price on shares of Automatic Data Processing in a research note on Thursday. Finally, JPMorgan Chase & Co. reduced their price target on shares of Automatic Data Processing from $254.00 to $250.00 and set an “underweight” rating for the company in a report on Thursday, May 2nd. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and two have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $259.64.

About Automatic Data Processing

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.