Automatic Data Processing (NASDAQ:ADP) Updates FY 2024 Earnings Guidance

Automatic Data Processing (NASDAQ:ADP) issued an update on its FY 2024 earnings guidance on Wednesday morning. The company provided EPS guidance of 9.050-9.220 for the period, compared to the consensus EPS estimate of 9.130. The company issued revenue guidance of $19.1 billion-$19.3 billion, compared to the consensus revenue estimate of $19.2 billion. Automatic Data Processing also updated its FY24 guidance to $9.05-$9.22 EPS.

Automatic Data Processing Stock Performance

Shares of ADP traded down $0.14 during trading hours on Friday, hitting $241.89. The company’s stock had a trading volume of 1,491,532 shares, compared to its average volume of 1,451,137. Automatic Data Processing has a 52-week low of $205.53 and a 52-week high of $256.84. The business has a 50 day simple moving average of $245.63 and a two-hundred day simple moving average of $239.08. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.01 and a quick ratio of 1.01. The company has a market cap of $99.37 billion, a price-to-earnings ratio of 27.00, a PEG ratio of 2.27 and a beta of 0.78.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, May 1st. The business services provider reported $2.88 EPS for the quarter, topping analysts’ consensus estimates of $2.79 by $0.09. Automatic Data Processing had a net margin of 19.56% and a return on equity of 93.09%. The business had revenue of $5.30 billion during the quarter, compared to analysts’ expectations of $5.22 billion. During the same quarter in the previous year, the company earned $2.52 EPS. The business’s quarterly revenue was up 7.6% compared to the same quarter last year. On average, equities analysts expect that Automatic Data Processing will post 9.15 earnings per share for the current fiscal year.

Automatic Data Processing Announces Dividend

The business 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. This represents a $5.60 annualized dividend and a dividend yield of 2.32%. The ex-dividend date of this dividend is Friday, June 14th. Automatic Data Processing’s dividend payout ratio is currently 62.50%.

Analyst Upgrades and Downgrades

ADP has been the subject of several research reports. JPMorgan Chase & Co. decreased their price objective on shares of Automatic Data Processing from $254.00 to $250.00 and set an underweight rating for the company in a report on Thursday. Evercore ISI lifted their price objective on Automatic Data Processing from $227.00 to $235.00 and gave the stock an underperform rating in a research note on Tuesday, March 26th. Bank of America upgraded shares of Automatic Data Processing from an underperform rating to a neutral rating and upped their target price for the company from $217.00 to $243.00 in a research report on Wednesday, January 17th. Mizuho raised their price target on Automatic Data Processing from $265.00 to $272.00 and gave the stock a buy rating in a research report on Monday, March 11th. Finally, Barclays upped their target price on Automatic Data Processing from $280.00 to $282.00 and gave the company an overweight rating in a research note on Thursday. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and two have assigned a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of Hold and an average price target of $255.42.

Insider Activity

In other Automatic Data Processing news, VP Joseph Desilva sold 1,904 shares of the company’s stock in a transaction dated Thursday, February 22nd. The stock was sold at an average price of $255.00, for a total transaction of $485,520.00. Following the completion of the sale, the vice president now directly owns 17,179 shares in the company, valued at $4,380,645. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other news, VP David Kwon sold 863 shares of Automatic Data Processing stock in a transaction that occurred on Tuesday, February 6th. The stock was sold at an average price of $250.00, for a total value of $215,750.00. Following the completion of the transaction, the vice president now owns 8,285 shares in the company, valued at approximately $2,071,250. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Joseph Desilva sold 1,904 shares of Automatic Data Processing stock in a transaction dated Thursday, February 22nd. The shares were sold at an average price of $255.00, for a total transaction of $485,520.00. Following the completion of the transaction, the vice president now directly owns 17,179 shares of the company’s stock, valued at $4,380,645. The disclosure for this sale can be found here. Insiders sold a total of 3,829 shares of company stock valued at $965,274 over the last 90 days. Insiders own 0.26% of the company’s stock.

Automatic Data Processing Company Profile

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.