Brokerages expect Automatic Data Processing (NASDAQ:ADP) to announce earnings of $1.94 per share for the current fiscal quarter, Zacks reports. Six analysts have made estimates for Automatic Data Processing’s earnings. The highest EPS estimate is $1.97 and the lowest is $1.90. Automatic Data Processing reported earnings of $1.77 per share in the same quarter last year, which would suggest a positive year over year growth rate of 9.6%. The firm is expected to announce its next quarterly earnings report on Wednesday, May 6th.
According to Zacks, analysts expect that Automatic Data Processing will report full-year earnings of $6.17 per share for the current fiscal year, with EPS estimates ranging from $6.12 to $6.21. For the next fiscal year, analysts forecast that the company will report earnings of $6.90 per share, with EPS estimates ranging from $6.74 to $7.02. Zacks Investment Research’s EPS averages are a mean average based on a survey of sell-side research firms that follow Automatic Data Processing.
Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, January 29th. The business services provider reported $1.52 EPS for the quarter, topping analysts’ consensus estimates of $1.44 by $0.08. The company had revenue of $3.67 billion for the quarter, compared to analysts’ expectations of $3.69 billion. Automatic Data Processing had a return on equity of 46.96% and a net margin of 16.97%. The firm’s revenue was up 5.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.34 earnings per share.
Several analysts have recently issued reports on ADP shares. Citigroup increased their price objective on Automatic Data Processing from $170.00 to $185.00 and gave the company a “neutral” rating in a research note on Tuesday, January 14th. BidaskClub upgraded Automatic Data Processing from a “hold” rating to a “buy” rating in a research note on Wednesday, January 29th. Credit Suisse Group reiterated a “buy” rating and issued a $190.00 price objective on shares of Automatic Data Processing in a research note on Sunday, February 2nd. Moffett Nathanson cut Automatic Data Processing from a “buy” rating to a “neutral” rating in a research note on Tuesday, January 7th. Finally, Morgan Stanley increased their price objective on Automatic Data Processing from $174.00 to $180.00 and gave the company an “equal weight” rating in a research note on Thursday, January 23rd. Ten analysts have rated the stock with a hold rating and six have issued a buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus price target of $186.20.
Shares of NASDAQ ADP traded up $1.14 during mid-day trading on Friday, hitting $181.25. The company had a trading volume of 1,566,513 shares, compared to its average volume of 1,985,642. The company has a market capitalization of $78.26 billion, a PE ratio of 32.02, a price-to-earnings-growth ratio of 2.24 and a beta of 0.87. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.02 and a quick ratio of 1.02. Automatic Data Processing has a 1-year low of $148.15 and a 1-year high of $181.28. The business’s 50-day simple moving average is $174.09 and its 200 day simple moving average is $167.66.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be issued a $0.91 dividend. This represents a $3.64 annualized dividend and a 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 declared that its board has approved a stock repurchase plan on Tuesday, November 12th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the business services provider to buy up to 6.8% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.
In related news, VP Donald Weinstein sold 2,468 shares of the stock in a transaction on Thursday, February 6th. The stock was sold at an average price of $180.00, for a total value of $444,240.00. Following the transaction, the vice president now owns 26,578 shares of the company’s stock, valued at $4,784,040. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Don Mcguire sold 326 shares of the stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $172.07, for a total value of $56,094.82. Following the completion of the transaction, the vice president now directly owns 6,916 shares in the company, valued at approximately $1,190,036.12. The disclosure for this sale can be found here. Insiders sold 14,528 shares of company stock worth $2,556,051 in the last three months. 0.31% of the stock is currently owned by corporate insiders.
A number of large investors have recently bought and sold shares of ADP. BlackRock Inc. grew its holdings in Automatic Data Processing by 1.2% during the 2nd quarter. BlackRock Inc. now owns 30,955,650 shares of the business services provider’s stock valued at $5,117,899,000 after buying an additional 368,108 shares in the last quarter. River & Mercantile Asset Management LLP purchased a new position in Automatic Data Processing during the 2nd quarter valued at approximately $351,000. Macquarie Group Ltd. grew its holdings in Automatic Data Processing by 4.6% during the 2nd quarter. Macquarie Group Ltd. now owns 20,341 shares of the business services provider’s stock valued at $3,363,000 after buying an additional 892 shares in the last quarter. Old North State Trust LLC grew its holdings in Automatic Data Processing by 80.9% during the 3rd quarter. Old North State Trust LLC now owns 671 shares of the business services provider’s stock valued at $108,000 after buying an additional 300 shares in the last quarter. Finally, Crossmark Global Holdings Inc. grew its holdings in Automatic Data Processing by 1.5% during the 3rd quarter. Crossmark Global Holdings Inc. now owns 48,992 shares of the business services provider’s stock valued at $7,908,000 after buying an additional 717 shares in the last quarter. 80.12% of the stock is currently owned by hedge funds and other institutional investors.
About Automatic Data Processing
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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