Automatic Data Processing (NASDAQ:ADP) Releases Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Automatic Data Processing (NASDAQ:ADP) issued its quarterly earnings results on Wednesday. The business services provider reported $2.88 earnings per share for the quarter, beating the consensus estimate of $2.79 by $0.09, Briefing.com reports. Automatic Data Processing had a return on equity of 95.22% and a net margin of 19.14%. The firm had revenue of $5.30 billion during the quarter, compared to the consensus estimate of $5.22 billion. During the same period last year, the company earned $2.52 earnings per share. The company’s revenue was up 7.6% on a year-over-year basis. Automatic Data Processing updated its FY24 guidance to $9.05-$9.22 EPS and its FY 2024 guidance to 9.050-9.220 EPS.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock traded down $4.71 during trading hours on Thursday, reaching $242.62. 293,882 shares of the stock traded hands, compared to its average volume of 1,780,879. The company has a 50 day moving average price of $246.16 and a 200 day moving average price of $239.11. The firm has a market capitalization of $99.67 billion, a price-to-earnings ratio of 28.27, a P/E/G ratio of 2.27 and a beta of 0.78. Automatic Data Processing has a one year low of $205.53 and a one year high of $256.84. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.69.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, July 1st. Shareholders of record on Friday, June 14th will be paid a dividend of $1.40 per share. The ex-dividend date is Friday, June 14th. This represents a $5.60 dividend on an annualized basis and a dividend yield of 2.31%. Automatic Data Processing’s dividend payout ratio is currently 65.19%.

Wall Street Analyst Weigh In

ADP has been the subject of several analyst reports. Wolfe Research upgraded Automatic Data Processing from an “underperform” rating to a “peer perform” rating in a report on Thursday, January 4th. Mizuho lifted their price objective on Automatic Data Processing from $265.00 to $272.00 and gave the stock a “buy” rating in a report on Monday, March 11th. Royal Bank of Canada reissued a “sector perform” rating and issued a $267.00 target price on shares of Automatic Data Processing in a research report on Thursday, February 1st. Bank of America raised Automatic Data Processing from an “underperform” rating to a “neutral” rating and boosted their target price for the stock from $217.00 to $243.00 in a research report on Wednesday, January 17th. Finally, Barclays boosted their target price on Automatic Data Processing from $280.00 to $282.00 and gave the stock an “overweight” rating in a research report on Thursday. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have given a buy rating to the stock. Based on data from MarketBeat, Automatic Data Processing currently has a consensus rating of “Hold” and a consensus price target of $258.55.

Insider Activity at Automatic Data Processing

In related news, VP Joseph Desilva sold 1,904 shares of the business’s stock in a transaction that occurred on Thursday, February 22nd. The stock was sold at an average price of $255.00, for a total transaction of $485,520.00. Following the completion of the transaction, the vice president now directly owns 17,179 shares in the company, valued at approximately $4,380,645. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. In other Automatic Data Processing news, VP Sreenivasa Kutam sold 694 shares of the company’s stock in a transaction that occurred on Friday, March 1st. The stock was sold at an average price of $249.43, for a total value of $173,104.42. Following the completion of the transaction, the vice president now directly owns 20,687 shares in the company, valued at approximately $5,159,958.41. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Joseph Desilva sold 1,904 shares of the company’s stock in a transaction that occurred on Thursday, February 22nd. The stock was sold at an average price of $255.00, for a total value of $485,520.00. Following the completion of the transaction, the vice president now owns 17,179 shares of the company’s stock, valued at $4,380,645. The disclosure for this sale can be found here. In the last ninety days, insiders sold 3,829 shares of company stock worth $965,274. 0.26% of the stock is owned by company insiders.

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.