Automatic Data Processing (NASDAQ:ADP) Releases FY24 Earnings Guidance

Automatic Data Processing (NASDAQ:ADP) issued an update on its FY24 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of $9.05-$9.22 for the period, compared to the consensus estimate of $9.12. The company issued revenue guidance of $19.08-$19.26 billion, compared to the consensus revenue estimate of $19.15 billion. Automatic Data Processing also updated its FY 2024 guidance to 9.050-9.220 EPS.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. TD Cowen cut their price target on shares of Automatic Data Processing from $253.00 to $251.00 and set a hold rating for the company in a research note on Thursday. JPMorgan Chase & Co. decreased their price objective on Automatic Data Processing from $254.00 to $250.00 and set an underweight rating on the stock in a report on Thursday. StockNews.com cut shares of Automatic Data Processing from a buy rating to a hold rating in a research note on Tuesday, March 19th. Evercore ISI lifted their price target on Automatic Data Processing from $227.00 to $235.00 and gave the stock an underperform rating in a research note on Tuesday, March 26th. Finally, Barclays upped their price objective on shares of Automatic Data Processing from $280.00 to $282.00 and gave the company an overweight rating in a research note on Thursday. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and two have assigned a buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of Hold and an average price target of $255.42.

Automatic Data Processing Price Performance

Shares of ADP traded down $0.14 during trading hours on Friday, reaching $241.89. 1,491,532 shares of the stock traded hands, compared to its average volume of 1,451,137. The company’s 50-day moving average price is $245.91 and its two-hundred day moving average price is $239.13. Automatic Data Processing has a 52-week low of $205.53 and a 52-week high of $256.84. The company has a market cap of $99.37 billion, a P/E ratio of 27.00, a price-to-earnings-growth ratio of 2.27 and a beta of 0.78. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.65.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, May 1st. The business services provider reported $2.88 earnings per share for the quarter, topping the consensus estimate of $2.79 by $0.09. The company had revenue of $5.30 billion for the quarter, compared to analysts’ expectations of $5.22 billion. Automatic Data Processing had a net margin of 19.56% and a return on equity of 93.09%. Automatic Data Processing’s quarterly revenue was up 7.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.52 earnings per share. On average, analysts anticipate that Automatic Data Processing will post 9.15 earnings per share for the current year.

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 1st. Investors of record on Friday, June 14th will be issued a dividend of $1.40 per share. The ex-dividend date is Friday, June 14th. This represents a $5.60 dividend on an annualized basis and a yield of 2.32%. Automatic Data Processing’s payout ratio is 62.50%.

Insider Activity at Automatic Data Processing

In related news, VP David Kwon sold 863 shares of Automatic Data Processing stock in a transaction dated Tuesday, February 6th. The stock was sold at an average price of $250.00, for a total value of $215,750.00. Following the completion of the sale, the vice president now directly owns 8,285 shares in the company, valued at $2,071,250. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other news, VP David Kwon sold 863 shares of the stock in a transaction on Tuesday, February 6th. The stock was sold at an average price of $250.00, for a total transaction of $215,750.00. Following the completion of the sale, the vice president now owns 8,285 shares in the company, valued at approximately $2,071,250. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Sreenivasa Kutam sold 694 shares of the company’s stock in a transaction that occurred on Friday, March 1st. The shares were sold at an average price of $249.43, for a total transaction of $173,104.42. Following the transaction, the vice president now owns 20,687 shares in the company, valued at approximately $5,159,958.41. The disclosure for this sale can be found here. Over the last quarter, insiders sold 3,829 shares of company stock worth $965,274. Company insiders own 0.26% of the company’s stock.

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.