Automatic Data Processing (NASDAQ:ADP) Expected to Announce Earnings of $1.46 Per Share

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Equities analysts expect that Automatic Data Processing (NASDAQ:ADP) will report earnings per share (EPS) of $1.46 for the current quarter, according to Zacks Investment Research. Six analysts have made estimates for Automatic Data Processing’s earnings, with the lowest EPS estimate coming in at $1.42 and the highest estimate coming in at $1.49. Automatic Data Processing reported earnings per share of $1.34 during the same quarter last year, which would suggest a positive year-over-year growth rate of 9%. The company is scheduled to report its next quarterly earnings report on Wednesday, January 29th.

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 $6.20. For the next year, analysts expect that the business will post earnings of $6.91 per share, with EPS estimates ranging from $6.74 to $7.09. Zacks Investment Research’s earnings per share calculations are a mean average based on a survey of sell-side research firms that that provide coverage for Automatic Data Processing.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, October 30th. The business services provider reported $1.34 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.33 by $0.01. Automatic Data Processing had a return on equity of 46.94% and a net margin of 16.52%. The company had revenue of $3.50 billion during the quarter, compared to analysts’ expectations of $3.52 billion. During the same period in the prior year, the business posted $1.20 EPS. The business’s revenue was up 5.6% on a year-over-year basis.

Several research analysts have weighed in on ADP shares. BidaskClub lowered shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Thursday. Credit Suisse Group restated a “buy” rating and issued a $185.00 target price on shares of Automatic Data Processing in a research note on Monday, November 4th. Cowen assumed coverage on shares of Automatic Data Processing in a research report on Wednesday, September 11th. They set an “outperform” rating and a $195.00 price target on the stock. ValuEngine upgraded Automatic Data Processing from a “sell” rating to a “hold” rating in a research note on Tuesday, December 3rd. Finally, Bank of America lowered Automatic Data Processing from a “buy” rating to a “neutral” rating in a report on Wednesday, September 11th. Ten investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus price target of $179.56.

In related news, CEO Carlos A. Rodriguez sold 49,392 shares of the company’s stock in a transaction on Wednesday, September 11th. The stock was sold at an average price of $161.70, for a total transaction of $7,986,686.40. Following the completion of the transaction, the chief executive officer now directly owns 132,338 shares in the company, valued at approximately $21,399,054.60. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Carlos A. Rodriguez sold 48,571 shares of the company’s stock in a transaction on Wednesday, November 13th. The stock was sold at an average price of $168.51, for a total value of $8,184,699.21. Following the transaction, the chief executive officer now owns 144,899 shares of the company’s stock, valued at $24,416,930.49. The disclosure for this sale can be found here. Company insiders own 0.31% of the company’s stock.

A number of hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. raised its holdings in shares of Automatic Data Processing by 1.7% during the second quarter. Vanguard Group Inc. now owns 38,214,507 shares of the business services provider’s stock valued at $6,318,005,000 after buying an additional 644,178 shares during the last quarter. BlackRock Inc. boosted its position in shares of Automatic Data Processing by 1.2% during the second quarter. BlackRock Inc. now owns 30,955,650 shares of the business services provider’s stock worth $5,117,899,000 after buying an additional 368,108 shares during the period. State Street Corp boosted its position in shares of Automatic Data Processing by 0.4% during the third quarter. State Street Corp now owns 19,152,523 shares of the business services provider’s stock worth $3,106,583,000 after buying an additional 66,942 shares during the period. Morgan Stanley grew its holdings in Automatic Data Processing by 6.5% in the 2nd quarter. Morgan Stanley now owns 8,414,928 shares of the business services provider’s stock worth $1,391,241,000 after buying an additional 516,484 shares in the last quarter. Finally, Nuveen Asset Management LLC grew its holdings in Automatic Data Processing by 40,836.2% in the 2nd quarter. Nuveen Asset Management LLC now owns 4,719,538 shares of the business services provider’s stock worth $780,281,000 after buying an additional 4,708,009 shares in the last quarter. Institutional investors own 80.19% of the company’s stock.

ADP traded up $1.62 during trading on Friday, hitting $169.98. The company had a trading volume of 1,280,569 shares, compared to its average volume of 1,546,016. The company has a market cap of $72.85 billion, a PE ratio of 31.19, a P/E/G ratio of 2.10 and a beta of 0.88. The business has a 50-day moving average of $166.07 and a 200-day moving average of $164.87. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.01 and a quick ratio of 1.01. Automatic Data Processing has a 1-year low of $121.40 and a 1-year high of $174.50.

Automatic Data Processing declared that its board has initiated a share buyback program 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 repurchase up to 6.8% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 1st. Shareholders of record on Friday, December 13th will be paid a dividend of $0.91 per share. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $0.79. The ex-dividend date of this dividend is Thursday, December 12th. This represents a $3.64 annualized dividend and a yield of 2.14%. Automatic Data Processing’s payout ratio is presently 57.98%.

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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Earnings History and Estimates for Automatic Data Processing (NASDAQ:ADP)

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