Analysts Expect Automatic Data Processing (NASDAQ:ADP) to Announce $1.94 Earnings Per Share

Analysts predict that Automatic Data Processing (NASDAQ:ADP) will post $1.94 earnings per share for the current quarter, according to Zacks. Six analysts have provided estimates for Automatic Data Processing’s earnings, with the lowest EPS estimate coming in at $1.90 and the highest estimate coming in at $1.97. Automatic Data Processing posted earnings per share of $1.77 during the same quarter last year, which indicates a positive year-over-year growth rate of 9.6%. The firm is expected to announce its next earnings results on Wednesday, May 6th.

According to Zacks, analysts expect that Automatic Data Processing will report full year earnings of $6.17 per share for the current financial year, with EPS estimates ranging from $6.12 to $6.21. For the next fiscal year, analysts expect that the firm will report earnings of $6.90 per share, with EPS estimates ranging from $6.74 to $7.02. Zacks’ earnings per share averages are a mean average based on a survey of sell-side research analysts that cover Automatic Data Processing.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, January 29th. The business services provider reported $1.52 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.44 by $0.08. The business had revenue of $3.67 billion for the quarter, compared to analysts’ expectations of $3.69 billion. Automatic Data Processing had a return on equity of 46.96% and a net margin of 16.97%. The business’s revenue was up 5.1% on a year-over-year basis. During the same period in the previous year, the firm posted $1.34 EPS.

A number of brokerages have recently commented on ADP. Wolfe Research cut Automatic Data Processing from an “outperform” rating to a “market perform” rating in a research report on Thursday, October 31st. Moffett Nathanson cut Automatic Data Processing from a “buy” rating to a “neutral” rating in a research report on Tuesday, January 7th. Credit Suisse Group reissued a “buy” rating and issued a $190.00 price target on shares of Automatic Data Processing in a research report on Sunday, February 2nd. Evercore ISI raised Automatic Data Processing from an “in-line” rating to an “outperform” rating and set a $212.00 price target on the stock in a research report on Wednesday, January 22nd. Finally, ValuEngine raised Automatic Data Processing from a “sell” rating to a “hold” rating in a research report on Tuesday, December 3rd. Ten research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average price target of $186.20.

Automatic Data Processing stock traded up $1.14 during trading hours on Friday, hitting $181.25. 1,566,513 shares of the stock traded hands, compared to its average volume of 1,985,642. The firm’s 50-day moving average price is $174.09 and its two-hundred day moving average price is $167.66. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.25. The company has a market cap of $78.26 billion, a PE ratio of 32.02, a PEG ratio of 2.24 and a beta of 0.87. Automatic Data Processing has a one year low of $148.15 and a one year high of $181.28.

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be paid a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, March 12th. This represents a $3.64 dividend on an annualized basis and a yield of 2.01%. Automatic Data Processing’s dividend payout ratio is presently 66.79%.

Automatic Data Processing announced that its Board of Directors has authorized a share repurchase plan on Tuesday, November 12th that authorizes the company to buyback $5.00 billion in shares. This buyback authorization authorizes the business services provider to purchase up to 6.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its shares are undervalued.

In other news, VP John Ayala sold 6,484 shares of the business’s stock in a transaction on Friday, January 17th. The shares were sold at an average price of $176.03, for a total transaction of $1,141,378.52. Following the completion of the sale, the vice president now owns 19,578 shares of the company’s stock, valued at approximately $3,446,315.34. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Donald Weinstein sold 2,000 shares of the business’s stock in a transaction on Thursday, January 2nd. The shares were sold at an average price of $170.08, for a total transaction of $340,160.00. Following the sale, the vice president now directly owns 25,710 shares of the company’s stock, valued at approximately $4,372,756.80. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 14,528 shares of company stock valued at $2,556,051. Company insiders own 0.31% of the company’s stock.

Several hedge funds have recently modified their holdings of the company. CIBC Asset Management Inc boosted its holdings in Automatic Data Processing by 2.3% in the 3rd quarter. CIBC Asset Management Inc now owns 74,471 shares of the business services provider’s stock worth $12,021,000 after buying an additional 1,684 shares during the period. Squarepoint Ops LLC boosted its holdings in Automatic Data Processing by 38.8% in the 3rd quarter. Squarepoint Ops LLC now owns 105,650 shares of the business services provider’s stock worth $17,054,000 after buying an additional 29,532 shares during the period. Advisors Capital Management LLC boosted its holdings in Automatic Data Processing by 215.6% in the 4th quarter. Advisors Capital Management LLC now owns 10,958 shares of the business services provider’s stock worth $1,868,000 after buying an additional 7,486 shares during the period. Eastern Bank boosted its holdings in Automatic Data Processing by 4.9% in the 4th quarter. Eastern Bank now owns 23,770 shares of the business services provider’s stock worth $4,053,000 after buying an additional 1,106 shares during the period. Finally, Windsor Group LTD boosted its holdings in Automatic Data Processing by 30.0% in the 4th quarter. Windsor Group LTD now owns 2,267 shares of the business services provider’s stock worth $386,000 after buying an additional 523 shares during the period. 80.12% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides business process outsourcing services worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers various human resources (HR) outsourcing and technology-based human capital management solutions.

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

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