- ADP’s adjusted EPS for the second quarter was $2.13, beating estimates of $2.10 and up from last year’s $1.96.
- The company’s revenue was $4.67 billion, a 6.3% increase from the same period last year and slightly over the estimated $4.66 billion.
- Employer services revenue stood at $3.13 billion, an 8.1% increase year over year and surpassing the estimate of $3.11 billion.
- PEO services revenue was $1.55 billion, a 2.8% increase from the previous year and in line with estimates.
- The company reported a pretax profit of $1.14 billion, an 8.1% increase from the previous year and in line with estimates.
- Employer services pretax earnings were $1.06 billion, a 14% increase year over year and higher than the estimated $1.02 billion.
- The employer services pretax margin was 34%, up from 32.3% the previous year and higher than the estimated 32.3%.
- ADP forecasts an increase of 10% to 12% in adjusted EPS for the year.
- The company expects a 6% to 7% increase in revenue for the year.
- ADP sees new bookings for employer services growing by 4% to 7%.
- The company has received 3 buy ratings, 18 hold ratings, and 2 sell ratings.
Automatic Data Processing on Smartkarma
Automatic Data Processing (ADP) has been receiving positive analyst coverage on Smartkarma, an independent investment research network. According to a report by Baptista Research, ADP has shown strong growth in the previous quarter, beating expectations. The company’s Human Capital Management (HCM) demand has remained healthy and their sales and marketing team has delivered exceptional results, leading to double-digit overall growth in their Employer Services and new business Bookings. With a focus on innovation, client service, and expanding its reach, ADP aims to capitalize on the growth opportunities in the HCM industry.
A look at Automatic Data Processing Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Automatic Data Processing, Inc. is a global company that offers various business solutions. These solutions include services related to human resources, payroll, taxes, and benefits administration. The company is also involved in providing solutions for automobile, truck, motorcycle, marine, and recreational vehicle dealers. Based on Smartkarma Smart Scores, Automatic Data Processing has received a score of 2 for value, 2 for dividend, 4 for growth, 3 for resilience, and 3 for momentum. This indicates a positive long-term outlook for the company.
According to Smartkarma Smart Scores, Automatic Data Processing has an overall positive outlook for the future. With a score of 4 for growth and 3 for both resilience and momentum, the company is expected to continue growing and performing well in the long run. Additionally, with a score of 2 for both value and dividend, Automatic Data Processing is considered to be a stable and reliable company. As a global provider of business outsourcing solutions, the company is well-positioned to maintain its success and meet the needs of its clients in the years to come.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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