Automatic Data Processing, Inc. (NASDAQ:ADP) Expected to Post Earnings of $1.47 Per Share

Wall Street brokerages expect Automatic Data Processing, Inc. (NASDAQ:ADPGet Rating) to report earnings per share of $1.47 for the current fiscal quarter, Zacks reports. Six analysts have made estimates for Automatic Data Processing’s earnings. The highest EPS estimate is $1.52 and the lowest is $1.43. Automatic Data Processing posted earnings of $1.20 per share in the same quarter last year, which would suggest a positive year over year growth rate of 22.5%. The business is expected to report its next earnings results on Monday, January 1st.

On average, analysts expect that Automatic Data Processing will report full-year earnings of $6.97 per share for the current year, with EPS estimates ranging from $6.86 to $7.03. For the next financial year, analysts forecast that the company will report earnings of $7.75 per share, with EPS estimates ranging from $7.48 to $7.92. Zacks’ EPS averages are a mean average based on a survey of sell-side research analysts that that provide coverage for Automatic Data Processing.

Automatic Data Processing (NASDAQ:ADPGet Rating) last issued its quarterly earnings data on Wednesday, April 27th. The business services provider reported $2.21 EPS for the quarter, topping the consensus estimate of $2.08 by $0.13. Automatic Data Processing had a net margin of 17.77% and a return on equity of 56.01%. The business had revenue of $4.51 billion during the quarter, compared to analyst estimates of $4.45 billion. During the same period in the prior year, the business earned $1.89 EPS. The company’s revenue for the quarter was up 10.0% on a year-over-year basis.

ADP has been the topic of a number of recent research reports. StockNews.com initiated coverage on shares of Automatic Data Processing in a research report on Thursday, March 31st. They issued a “hold” rating on the stock. Stifel Nicolaus restated a “hold” rating and set a $238.00 price objective (up from $222.00) on shares of Automatic Data Processing in a research note on Friday, March 11th. Mizuho lifted their target price on shares of Automatic Data Processing from $235.00 to $250.00 and gave the stock a “buy” rating in a report on Monday, May 2nd. Citigroup increased their price target on shares of Automatic Data Processing from $212.00 to $230.00 in a report on Monday, May 2nd. Finally, Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Automatic Data Processing from $203.00 to $234.00 in a report on Thursday, April 28th. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating and three have issued a buy rating to the company’s stock. Based on data from MarketBeat, Automatic Data Processing has an average rating of “Hold” and an average price target of $231.43.

In other Automatic Data Processing news, VP Deborah L. Dyson sold 2,787 shares of the stock in a transaction dated Tuesday, April 5th. The shares were sold at an average price of $234.55, for a total transaction of $653,690.85. Following the completion of the transaction, the vice president now owns 26,663 shares of the company’s stock, valued at approximately $6,253,806.65. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Christopher D’ambrosio sold 312 shares of the stock in a transaction dated Monday, May 9th. The shares were sold at an average price of $214.07, for a total transaction of $66,789.84. Following the transaction, the vice president now directly owns 1,663 shares of the company’s stock, valued at approximately $355,998.41. The disclosure for this sale can be found here. Corporate insiders own 0.34% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in ADP. BlackRock Inc. lifted its holdings in shares of Automatic Data Processing by 5.1% in the 1st quarter. BlackRock Inc. now owns 33,637,473 shares of the business services provider’s stock valued at $7,653,871,000 after acquiring an additional 1,642,852 shares during the last quarter. State Street Corp lifted its holdings in shares of Automatic Data Processing by 2.0% in the 4th quarter. State Street Corp now owns 18,427,297 shares of the business services provider’s stock valued at $4,562,432,000 after acquiring an additional 357,520 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Automatic Data Processing by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 8,128,167 shares of the business services provider’s stock valued at $1,999,845,000 after acquiring an additional 73,543 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in shares of Automatic Data Processing by 7.4% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 6,689,136 shares of the business services provider’s stock valued at $1,522,047,000 after acquiring an additional 461,438 shares during the last quarter. Finally, Capital World Investors lifted its holdings in shares of Automatic Data Processing by 16.9% in the 1st quarter. Capital World Investors now owns 5,393,160 shares of the business services provider’s stock valued at $1,227,160,000 after acquiring an additional 779,457 shares during the last quarter. 78.84% of the stock is owned by institutional investors and hedge funds.

NASDAQ:ADP opened at $219.99 on Thursday. The firm’s 50-day moving average price is $222.52 and its 200-day moving average price is $221.46. The company has a market capitalization of $91.90 billion, a PE ratio of 32.49, a P/E/G ratio of 2.66 and a beta of 0.82. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.01 and a quick ratio of 1.01. Automatic Data Processing has a 1-year low of $192.18 and a 1-year high of $248.96.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 1st. Stockholders of record on Friday, June 10th will be paid a $1.04 dividend. The ex-dividend date of this dividend is Thursday, June 9th. This represents a $4.16 annualized dividend and a dividend yield of 1.89%. Automatic Data Processing’s dividend payout ratio (DPR) is 61.45%.

About Automatic Data Processing (Get Rating)

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.

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