Automatic Data Processing (NASDAQ:ADP) Updates FY24 Earnings Guidance

Automatic Data Processing (NASDAQ:ADP) updated its FY24 earnings guidance on Wednesday. The company provided earnings per share guidance of $9.05-$9.22 for the period, compared to the consensus earnings per share estimate of $9.12. The company issued revenue guidance of $19.08-$19.26 billion, compared to the consensus revenue estimate of $19.15 billion. Automatic Data Processing also updated its FY 2024 guidance to 9.050-9.220 EPS.

Analyst Ratings Changes

A number of research firms recently issued reports on ADP. Evercore ISI boosted their price objective on Automatic Data Processing from $227.00 to $235.00 and gave the company an underperform rating in a research note on Tuesday, March 26th. Bank of America upgraded Automatic Data Processing from an underperform rating to a neutral rating and upped their price objective for the stock from $217.00 to $243.00 in a report on Wednesday, January 17th. Royal Bank of Canada restated a sector perform rating and set a $267.00 target price on shares of Automatic Data Processing in a report on Thursday, February 1st. Mizuho increased their target price on Automatic Data Processing from $265.00 to $272.00 and gave the stock a buy rating in a research report on Monday, March 11th. Finally, TD Cowen reduced their price objective on Automatic Data Processing from $253.00 to $251.00 and set a hold rating for the company in a research report on Thursday. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and two have given a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of Hold and a consensus price target of $255.42.

Automatic Data Processing Price Performance

Shares of ADP stock traded down $0.14 during trading hours on Friday, hitting $241.89. The stock had a trading volume of 1,491,532 shares, compared to its average volume of 1,451,137. Automatic Data Processing has a one year low of $205.53 and a one year high of $256.84. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.01 and a quick ratio of 1.01. The stock’s 50-day moving average price is $245.91 and its two-hundred day moving average price is $239.13. The stock has a market capitalization of $99.37 billion, a price-to-earnings ratio of 27.00, a PEG ratio of 2.27 and a beta of 0.78.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, May 1st. The business services provider reported $2.88 earnings per share for the quarter, topping the consensus estimate of $2.79 by $0.09. Automatic Data Processing had a return on equity of 93.09% and a net margin of 19.56%. The company had revenue of $5.30 billion for the quarter, compared to analysts’ expectations of $5.22 billion. During the same period in the previous year, the firm posted $2.52 earnings per share. The firm’s revenue for the quarter was up 7.6% on a year-over-year basis. Equities analysts forecast that Automatic Data Processing will post 9.15 EPS for the current year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed 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 annualized dividend and a yield of 2.32%. Automatic Data Processing’s payout ratio is currently 62.50%.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Sreenivasa Kutam sold 368 shares of the business’s stock in a transaction that occurred on Monday, March 4th. The stock was sold at an average price of $247.01, for a total transaction of $90,899.68. Following the completion of the transaction, the vice president now owns 20,319 shares in the company, valued at $5,018,996.19. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In other Automatic Data Processing 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 owns 17,179 shares in the company, valued at $4,380,645. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Sreenivasa Kutam sold 368 shares of the business’s stock in a transaction that occurred on Monday, March 4th. The shares were sold at an average price of $247.01, for a total value of $90,899.68. Following the transaction, the vice president now owns 20,319 shares of the company’s stock, valued at approximately $5,018,996.19. The disclosure for this sale can be found here. Insiders have sold 3,829 shares of company stock valued at $965,274 over the last ninety days. 0.26% of the stock is owned by insiders.

About Automatic Data Processing

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.