Zacks: Brokerages Anticipate Automatic Data Processing (ADP) to Announce $1.69 EPS

Wall Street brokerages predict that Automatic Data Processing (NASDAQ:ADP) will report earnings per share (EPS) of $1.69 for the current fiscal quarter, according to Zacks. Seven analysts have provided estimates for Automatic Data Processing’s earnings, with estimates ranging from $1.65 to $1.71. Automatic Data Processing posted earnings per share of $1.52 during the same quarter last year, which would suggest a positive year-over-year growth rate of 11.2%. The company is scheduled to issue its next earnings results before the market opens on Wednesday, May 1st.

According to Zacks, analysts expect that Automatic Data Processing will report full year earnings of $5.37 per share for the current year, with EPS estimates ranging from $5.30 to $5.43. For the next year, analysts expect that the company will post earnings of $6.00 per share, with EPS estimates ranging from $5.73 to $6.15. Zacks’ EPS calculations are a mean average based on a survey of research analysts that follow Automatic Data Processing.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, January 30th. The business services provider reported $1.34 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.18 by $0.16. Automatic Data Processing had a return on equity of 51.92% and a net margin of 13.12%. The company had revenue of $3.51 billion for the quarter, compared to analysts’ expectations of $3.43 billion. During the same quarter in the previous year, the business posted $1.03 EPS. The business’s revenue for the quarter was up 8.3% on a year-over-year basis.

ADP has been the subject of several recent research reports. Zacks Investment Research cut Automatic Data Processing from a “buy” rating to a “sell” rating in a research note on Wednesday, January 2nd. BidaskClub cut Automatic Data Processing from a “strong-buy” rating to a “buy” rating in a research note on Friday, April 5th. Eight analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. The company currently has an average rating of “Buy” and a consensus price target of $153.43.

In related news, insider Jan Siegmund sold 36,403 shares of the business’s stock in a transaction that occurred on Tuesday, February 5th. The stock was sold at an average price of $145.02, for a total value of $5,279,163.06. Following the completion of the sale, the insider now directly owns 86,726 shares in the company, valued at approximately $12,577,004.52. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Carlos A. Rodriguez sold 36,364 shares of the business’s stock in a transaction that occurred on Thursday, February 14th. The stock was sold at an average price of $149.05, for a total value of $5,420,054.20. Following the completion of the sale, the chief executive officer now owns 148,842 shares of the company’s stock, valued at $22,184,900.10. The disclosure for this sale can be found here. In the last three months, insiders sold 112,578 shares of company stock valued at $17,078,216. 0.33% of the stock is currently owned by company insiders.

Institutional investors and hedge funds have recently bought and sold shares of the stock. Cerebellum GP LLC lifted its holdings in Automatic Data Processing by 1,376.9% in the 4th quarter. Cerebellum GP LLC now owns 192 shares of the business services provider’s stock worth $25,000 after purchasing an additional 179 shares during the last quarter. Horan Capital Advisors LLC. acquired a new stake in Automatic Data Processing in the 1st quarter worth approximately $31,000. Lake Point Wealth Management acquired a new stake in Automatic Data Processing in the 4th quarter worth approximately $26,000. AlphaMark Advisors LLC lifted its holdings in Automatic Data Processing by 319.1% in the 4th quarter. AlphaMark Advisors LLC now owns 197 shares of the business services provider’s stock worth $26,000 after purchasing an additional 150 shares during the last quarter. Finally, Tributary Capital Management LLC acquired a new stake in Automatic Data Processing in the 4th quarter worth approximately $26,000. Hedge funds and other institutional investors own 80.48% of the company’s stock.

NASDAQ:ADP traded down $1.54 on Wednesday, hitting $163.50. 1,472,413 shares of the company’s stock traded hands, compared to its average volume of 2,030,883. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.05 and a quick ratio of 1.05. Automatic Data Processing has a 1 year low of $112.58 and a 1 year high of $165.50. The stock has a market cap of $71.60 billion, a PE ratio of 37.59, a price-to-earnings-growth ratio of 2.32 and a beta of 0.96.

The company also recently declared a quarterly dividend, which will be paid on Monday, July 1st. Investors of record on Friday, June 14th will be paid a $0.79 dividend. The ex-dividend date is Thursday, June 13th. This represents a $3.16 annualized dividend and a dividend yield of 1.93%. Automatic Data Processing’s payout ratio is 72.64%.

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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