Automatic Data Processing (NASDAQ:ADP) Issues FY 2027 Earnings Guidance

Automatic Data Processing (NASDAQ:ADP) issued an update on its FY 2027 earnings guidance on Wednesday. The company provided EPS guidance of 12.120-12.340 for the period, compared to the consensus estimate of 12.190. The company issued revenue guidance of $23.0 billion-$23.3 billion, compared to the consensus revenue estimate of $23.1 billion.

Analyst Upgrades and Downgrades

ADP has been the subject of a number of research analyst reports. Guggenheim reiterated a “buy” rating and set a $270.00 price target on shares of Automatic Data Processing in a report on Tuesday, July 21st. Cantor Fitzgerald upped their price objective on Automatic Data Processing from $244.00 to $295.00 and gave the company an “overweight” rating in a research note on Wednesday, July 22nd. BMO Capital Markets cut their price objective on Automatic Data Processing from $281.00 to $234.00 and set a “market perform” rating for the company in a research report on Tuesday, April 7th. Jefferies Financial Group reduced their target price on Automatic Data Processing from $230.00 to $190.00 in a research note on Thursday, April 30th. Finally, Morgan Stanley reduced their target price on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating for the company in a research note on Tuesday, April 28th. Three research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $256.00.

Automatic Data Processing Price Performance

Shares of ADP opened at $264.17 on Wednesday. The company’s 50-day moving average is $233.13 and its 200-day moving average is $224.26. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. The firm has a market capitalization of $105.60 billion, a PE ratio of 24.64 and a beta of 0.83. Automatic Data Processing has a fifty-two week low of $188.16 and a fifty-two week high of $315.98.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, beating analysts’ consensus estimates of $2.59 by $0.05. The business had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Equities analysts forecast that Automatic Data Processing will post 11.08 EPS for the current year.

Institutional Investors Weigh In On Automatic Data Processing

A number of hedge funds and other institutional investors have recently modified their holdings of ADP. Imprint Wealth LLC bought a new position in Automatic Data Processing during the third quarter worth about $25,000. Prosperity Bancshares Inc bought a new stake in Automatic Data Processing in the 4th quarter valued at about $33,000. Wilkerson Advisory Group LLC acquired a new position in shares of Automatic Data Processing during the 4th quarter worth approximately $36,000. Kemnay Advisory Services Inc. acquired a new stake in shares of Automatic Data Processing in the fourth quarter valued at approximately $41,000. Finally, Swiss RE Ltd. bought a new stake in shares of Automatic Data Processing in the fourth quarter valued at approximately $43,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP’s product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.