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 guidance of $9.05-$9.22 for the period, compared to the consensus earnings per share 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.

Automatic Data Processing Stock Performance

ADP stock traded down $0.14 during trading on Friday, reaching $241.89. The stock had a trading volume of 1,491,532 shares, compared to its average volume of 1,451,137. The firm has a market cap of $99.37 billion, a PE ratio of 27.00, a PEG 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. The stock’s 50 day moving average is $245.91 and its two-hundred day moving average is $239.13. Automatic Data Processing has a 52 week low of $205.53 and a 52 week high of $256.84.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, May 1st. The business services provider reported $2.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.79 by $0.09. Automatic Data Processing had a net margin of 19.56% and a return on equity of 93.09%. The company had revenue of $5.30 billion during the quarter, compared to analyst estimates of $5.22 billion. During the same period in the previous year, the business posted $2.52 earnings per share. The firm’s quarterly revenue was up 7.6% compared to the same quarter last year. As a group, equities 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 declared a quarterly dividend, which will be paid on Monday, July 1st. Shareholders of record on Friday, June 14th will be issued a dividend of $1.40 per share. This represents a $5.60 annualized dividend and a yield of 2.32%. The ex-dividend date is Friday, June 14th. Automatic Data Processing’s dividend payout ratio is presently 62.50%.

Wall Street Analyst Weigh In

ADP has been the subject of a number of recent research reports. StockNews.com downgraded Automatic Data Processing from a buy rating to a hold rating in a research note on Tuesday, March 19th. Royal Bank of Canada reiterated a sector perform rating and issued a $267.00 price target on shares of Automatic Data Processing in a research report on Thursday, February 1st. JPMorgan Chase & Co. decreased their price objective on shares of Automatic Data Processing from $254.00 to $250.00 and set an underweight rating on the stock in a research report on Thursday. Bank of America raised shares of Automatic Data Processing from an underperform rating to a neutral rating and upped their target price for the stock from $217.00 to $243.00 in a report on Wednesday, January 17th. Finally, Barclays raised their price target on Automatic Data Processing from $280.00 to $282.00 and gave the company an overweight rating in a report on Thursday. Two analysts have rated the stock with a sell rating, eight have issued a hold rating and two have given a buy rating to the stock. According to MarketBeat, Automatic Data Processing presently has a consensus rating of Hold and an average target price of $255.42.

Insider Activity

In other news, VP Joseph Desilva sold 1,904 shares of the stock in a transaction on Thursday, February 22nd. The shares were sold at an average price of $255.00, for a total value of $485,520.00. Following the sale, the vice president now owns 17,179 shares of the company’s stock, valued at $4,380,645. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. In other 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 transaction, the vice president now directly owns 8,285 shares in the company, valued at $2,071,250. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Joseph Desilva sold 1,904 shares of Automatic Data Processing 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 sale, the vice president now owns 17,179 shares of the company’s stock, valued at approximately $4,380,645. The disclosure for this sale can be found here. Insiders sold 3,829 shares of company stock valued at $965,274 in the last ninety days. Insiders own 0.26% of the company’s stock.

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.