Automatic Data Processing (NASDAQ:ADP) Releases Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Automatic Data Processing (NASDAQ:ADP) posted its earnings results on Wednesday. The business services provider reported $2.88 earnings per share for the quarter, beating the consensus estimate of $2.79 by $0.09, Briefing.com reports. Automatic Data Processing had a net margin of 19.14% and a return on equity of 95.22%. The company had revenue of $5.30 billion during the quarter, compared to analysts’ expectations of $5.22 billion. During the same period last year, the company posted $2.52 earnings per share. Automatic Data Processing’s quarterly revenue was up 7.6% on a year-over-year basis. Automatic Data Processing updated its FY24 guidance to $9.05-$9.22 EPS and its FY 2024 guidance to 9.050-9.220 EPS.

Automatic Data Processing Trading Down 1.7 %

Shares of Automatic Data Processing stock traded down $4.19 on Thursday, reaching $243.14. The company had a trading volume of 327,338 shares, compared to its average volume of 1,781,549. Automatic Data Processing has a 52-week low of $205.53 and a 52-week high of $256.84. The firm’s 50 day moving average price is $246.16 and its two-hundred day moving average price is $239.11. The firm has a market cap of $99.88 billion, a PE ratio of 28.27, a PEG ratio of 2.27 and a beta of 0.78. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.01 and a current ratio of 1.01.

Automatic Data Processing Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, July 1st. Investors of record on Friday, June 14th will be given a dividend of $1.40 per share. The ex-dividend date is Friday, June 14th. This represents a $5.60 dividend on an annualized basis and a yield of 2.30%. Automatic Data Processing’s payout ratio is presently 65.19%.

Insider Buying and Selling

In other Automatic Data Processing news, VP David Kwon sold 863 shares of the firm’s stock in a transaction dated Tuesday, February 6th. The shares were sold at an average price of $250.00, for a total transaction of $215,750.00. Following the sale, the vice president now directly owns 8,285 shares of the company’s stock, valued at approximately $2,071,250. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, VP David Kwon sold 863 shares of Automatic Data Processing stock in a transaction on Tuesday, February 6th. The shares were sold at an average price of $250.00, for a total value of $215,750.00. Following the completion of the sale, the vice president now owns 8,285 shares in the company, valued at $2,071,250. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Sreenivasa Kutam sold 694 shares of the business’s stock in a transaction on Friday, March 1st. The shares were sold at an average price of $249.43, for a total transaction of $173,104.42. Following the transaction, the vice president now directly owns 20,687 shares of the company’s stock, valued at approximately $5,159,958.41. The disclosure for this sale can be found here. Insiders sold a total of 3,829 shares of company stock worth $965,274 in the last 90 days. Company insiders own 0.26% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on ADP shares. Mizuho upped their price objective on shares of Automatic Data Processing from $265.00 to $272.00 and gave the company a “buy” rating in a report on Monday, March 11th. StockNews.com downgraded Automatic Data Processing from a “buy” rating to a “hold” rating in a research note on Tuesday, March 19th. Wolfe Research upgraded Automatic Data Processing from an “underperform” rating to a “peer perform” rating in a report on Thursday, January 4th. Barclays upped their price target on Automatic Data Processing from $280.00 to $282.00 and gave the stock an “overweight” rating in a report on Thursday. Finally, Evercore ISI upped their price target on Automatic Data Processing from $227.00 to $235.00 and gave the company an “underperform” rating in a research report on Tuesday, March 26th. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $258.55.

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.