Analysts Expect Automatic Data Processing (NASDAQ:ADP) Will Announce Quarterly Sales of $4.06 Billion

Equities analysts expect Automatic Data Processing (NASDAQ:ADP) to post $4.06 billion in sales for the current fiscal quarter, according to Zacks Investment Research. Six analysts have made estimates for Automatic Data Processing’s earnings, with the highest sales estimate coming in at $4.08 billion and the lowest estimate coming in at $4.04 billion. Automatic Data Processing posted sales of $3.85 billion in the same quarter last year, which suggests a positive year-over-year growth rate of 5.5%. The business is expected to report its next quarterly earnings results on Wednesday, May 6th.

According to Zacks, analysts expect that Automatic Data Processing will report full-year sales of $14.93 billion for the current year, with estimates ranging from $14.90 billion to $14.96 billion. For the next fiscal year, analysts forecast that the company will report sales of $15.88 billion, with estimates ranging from $15.71 billion to $16.03 billion. Zacks’ sales calculations are an average based on a survey of sell-side research firms that that provide coverage for Automatic Data Processing.

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

Several brokerages recently issued reports on ADP. Wolfe Research downgraded Automatic Data Processing from an “outperform” rating to a “market perform” rating in a research report on Thursday, October 31st. Credit Suisse Group restated a “buy” rating and set a $190.00 price objective on shares of Automatic Data Processing in a report on Sunday, February 2nd. Morgan Stanley upped their price objective on Automatic Data Processing from $174.00 to $180.00 and gave the stock an “equal weight” rating in a report on Thursday, January 23rd. Citigroup upped their price objective on Automatic Data Processing from $170.00 to $185.00 and gave the stock a “neutral” rating in a report on Tuesday, January 14th. Finally, Moffett Nathanson cut shares of Automatic Data Processing from a “buy” rating to a “neutral” rating in a research report on Tuesday, January 7th. Ten investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company. Automatic Data Processing presently has a consensus rating of “Hold” and an average target price of $186.20.

Shares of NASDAQ:ADP traded up $1.14 during trading on Friday, hitting $181.25. 1,566,513 shares of the stock were exchanged, compared to its average volume of 1,985,642. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.25. Automatic Data Processing has a 12-month low of $148.15 and a 12-month high of $181.28. The company has a market cap of $78.26 billion, a PE ratio of 32.02, a P/E/G ratio of 2.24 and a beta of 0.87. The company has a fifty day moving average price of $174.09 and a two-hundred day moving average price of $167.66.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be issued a $0.91 dividend. This represents a $3.64 annualized dividend and a dividend yield of 2.01%. The ex-dividend date is Thursday, March 12th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 66.79%.

Automatic Data Processing announced that its Board of Directors has authorized a share buyback program on Tuesday, November 12th that allows the company to buyback $5.00 billion in shares. This buyback authorization allows the business services provider to purchase up to 6.8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its stock is undervalued.

In other news, VP Donald Weinstein sold 2,000 shares of the firm’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 transaction, the vice president now owns 25,710 shares in the company, valued at approximately $4,372,756.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP John Ayala sold 6,484 shares of the firm’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 transaction, the vice president now owns 19,578 shares in the company, valued at approximately $3,446,315.34. The disclosure for this sale can be found here. Insiders have sold 14,528 shares of company stock valued at $2,556,051 over the last 90 days. 0.31% of the stock is currently owned by insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of ADP. CIBC Asset Management Inc raised its stake in shares of Automatic Data Processing by 2.3% in the third quarter. CIBC Asset Management Inc now owns 74,471 shares of the business services provider’s stock worth $12,021,000 after acquiring an additional 1,684 shares during the last quarter. Squarepoint Ops LLC grew its holdings in Automatic Data Processing by 38.8% during the third quarter. Squarepoint Ops LLC now owns 105,650 shares of the business services provider’s stock valued at $17,054,000 after purchasing an additional 29,532 shares during the period. Advisors Capital Management LLC grew its holdings in Automatic Data Processing by 215.6% during the fourth quarter. Advisors Capital Management LLC now owns 10,958 shares of the business services provider’s stock valued at $1,868,000 after purchasing an additional 7,486 shares during the period. Eastern Bank boosted its holdings in shares of Automatic Data Processing by 4.9% in the fourth quarter. Eastern Bank now owns 23,770 shares of the business services provider’s stock valued at $4,053,000 after buying an additional 1,106 shares during the period. Finally, Windsor Group LTD boosted its holdings in shares of Automatic Data Processing by 30.0% in the fourth quarter. Windsor Group LTD now owns 2,267 shares of the business services provider’s stock valued at $386,000 after buying an additional 523 shares during the period. Institutional investors own 80.12% of the company’s stock.

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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