Automatic Data Processing (NASDAQ:ADP) Issues Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Automatic Data Processing (NASDAQ:ADP) released its quarterly earnings data on Wednesday. The business services provider reported $2.09 EPS for the quarter, beating the consensus estimate of $2.06 by $0.03, Briefing.com reports. The business had revenue of $4.80 billion for the quarter, compared to the consensus estimate of $4.74 billion. Automatic Data Processing had a net margin of 19.54% and a return on equity of 91.39%. During the same period in the prior year, the firm earned $1.89 earnings per share. The company’s revenue was up 7.2% compared to the same quarter last year. Automatic Data Processing updated its FY25 guidance to $9.91-$10.10 EPS and its FY 2025 guidance to 9.910-10.100 EPS.

Automatic Data Processing Stock Performance

NASDAQ ADP traded down $1.05 on Friday, reaching $260.25. 889,034 shares of the stock were exchanged, compared to its average volume of 1,677,151. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.65. Automatic Data Processing has a one year low of $205.53 and a one year high of $269.49. The firm has a market capitalization of $106.52 billion, a PE ratio of 29.16, a PEG ratio of 2.74 and a beta of 0.78. The company’s 50-day simple moving average is $244.82 and its two-hundred day simple moving average is $245.58.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on ADP shares. Stifel Nicolaus increased their price target on shares of Automatic Data Processing from $271.00 to $287.00 and gave the stock a “hold” rating in a report on Thursday. Royal Bank of Canada reiterated a “sector perform” rating and set a $267.00 price target on shares of Automatic Data Processing in a research report on Thursday. TD Cowen decreased their price objective on shares of Automatic Data Processing from $253.00 to $251.00 and set a “hold” rating on the stock in a research report on Thursday, May 2nd. Bank of America lifted their target price on shares of Automatic Data Processing from $250.00 to $267.00 and gave the company a “neutral” rating in a research report on Thursday. Finally, Barclays lifted their price objective on shares of Automatic Data Processing from $280.00 to $282.00 and gave the stock an “overweight” rating in a report on Thursday, May 2nd. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and two have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $259.64.

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.