Analysts Expect Automatic Data Processing, Inc. (NASDAQ:ADP) Will Post Quarterly Sales of $3.97 Billion

Wall Street analysts predict that Automatic Data Processing, Inc. (NASDAQ:ADP) will post sales of $3.97 billion for the current fiscal quarter, according to Zacks. Six analysts have issued estimates for Automatic Data Processing’s earnings, with the lowest sales estimate coming in at $3.94 billion and the highest estimate coming in at $4.01 billion. Automatic Data Processing posted sales of $3.70 billion in the same quarter last year, which would indicate a positive year-over-year growth rate of 7.3%. The firm is scheduled to issue its next earnings results on Wednesday, January 26th.

On average, analysts expect that Automatic Data Processing will report full year sales of $16.16 billion for the current year, with estimates ranging from $16.07 billion to $16.20 billion. For the next year, analysts forecast that the company will report sales of $17.26 billion, with estimates ranging from $17.03 billion to $17.42 billion. Zacks’ sales calculations 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:ADP) last posted its quarterly earnings data on Tuesday, October 26th. The business services provider reported $1.65 earnings per share for the quarter, topping analysts’ consensus estimates of $1.49 by $0.16. Automatic Data Processing had a return on equity of 47.31% and a net margin of 17.55%. The business had revenue of $3.80 billion for the quarter, compared to analyst estimates of $3.75 billion. During the same quarter in the prior year, the company earned $1.41 earnings per share. The company’s revenue was up 9.5% on a year-over-year basis.

A number of equities analysts recently commented on the stock. Morgan Stanley boosted their target price on shares of Automatic Data Processing from $215.00 to $235.00 and gave the stock an “equal weight” rating in a research note on Tuesday, November 16th. Robert W. Baird boosted their target price on shares of Automatic Data Processing from $228.00 to $242.00 and gave the stock a “neutral” rating in a research note on Tuesday, November 16th. Zacks Investment Research downgraded shares of Automatic Data Processing from a “buy” rating to a “hold” rating and set a $247.00 target price for the company. in a research note on Wednesday, November 17th. JPMorgan Chase & Co. downgraded shares of Automatic Data Processing from a “neutral” rating to an “underweight” rating and set a $224.00 target price for the company. in a research note on Tuesday, August 17th. They noted that the move was a valuation call. Finally, Citigroup downgraded shares of Automatic Data Processing from a “buy” rating to a “neutral” rating and upped their price objective for the company from $212.00 to $220.00 in a research note on Tuesday, August 10th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and four have assigned a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $224.29.

Shares of ADP stock traded down $1.77 on Thursday, reaching $234.37. 1,511,075 shares of the stock were exchanged, compared to its average volume of 1,644,715. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.56. The business’s 50 day moving average price is $215.87 and its 200 day moving average price is $207.30. The company has a market capitalization of $98.76 billion, a price-to-earnings ratio of 37.08, a PEG ratio of 2.93 and a beta of 0.76. Automatic Data Processing has a twelve month low of $159.31 and a twelve month high of $241.18.

The firm also recently announced a quarterly dividend, which will be paid on Saturday, January 1st. Stockholders of record on Friday, December 10th will be paid a dividend of $1.04 per share. This is an increase from Automatic Data Processing’s previous quarterly dividend of $0.93. The ex-dividend date is Thursday, December 9th. This represents a $4.16 annualized dividend and a dividend yield of 1.77%. Automatic Data Processing’s dividend payout ratio is 58.86%.

Several institutional investors and hedge funds have recently made changes to their positions in the company. Fortis Advisors LLC acquired a new stake in shares of Automatic Data Processing during the third quarter worth about $35,000. EP Wealth Advisors LLC raised its holdings in Automatic Data Processing by 5.0% during the third quarter. EP Wealth Advisors LLC now owns 4,646 shares of the business services provider’s stock worth $929,000 after purchasing an additional 220 shares in the last quarter. Liontrust Investment Partners LLP purchased a new position in Automatic Data Processing during the third quarter worth about $630,000. CFS Investment Advisory Services LLC purchased a new position in Automatic Data Processing during the third quarter worth about $2,389,000. Finally, Personal CFO Solutions LLC raised its holdings in Automatic Data Processing by 10.8% during the third quarter. Personal CFO Solutions LLC now owns 1,668 shares of the business services provider’s stock worth $333,000 after purchasing an additional 162 shares in the last quarter. Institutional investors and hedge funds own 78.81% of the company’s stock.

About Automatic Data Processing

Automatic Data Processing, Inc engages in the provision of business outsourcing solutions specializes in cloud-based human capital management. It operates through the following business segments: Employer Services; and Professional Employer Organization Services; and Other. The Employer Services segment provides clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a range of human resources outsourcing and technology-based human capital management solutions, including strategic, cloud-based platforms.

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Earnings History and Estimates for Automatic Data Processing (NASDAQ:ADP)

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