Automatic Data Processing (NASDAQ:ADP) Issues FY24 Earnings Guidance

Automatic Data Processing (NASDAQ:ADP) issued an update on its FY24 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of $9.05-$9.22 for the period, compared to the consensus estimate of $9.12. The company issued revenue guidance of $19.08-$19.26 billion, compared to the consensus revenue estimate of $19.15 billion. Automatic Data Processing also updated its FY 2024 guidance to 9.050-9.220 EPS.

Automatic Data Processing Stock Down 0.1 %

Shares of NASDAQ:ADP traded down $0.14 during trading on Friday, reaching $241.89. 1,491,532 shares of the stock traded hands, compared to its average volume of 1,451,137. The stock has a 50-day moving average of $245.91 and a two-hundred day moving average of $239.13. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.01 and a current ratio of 1.01. Automatic Data Processing has a 52-week low of $205.53 and a 52-week high of $256.84. The stock has a market cap of $99.37 billion, a P/E ratio of 27.00, a price-to-earnings-growth ratio of 2.27 and a beta of 0.78.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, May 1st. The business services provider reported $2.88 EPS for the quarter, beating the consensus estimate of $2.79 by $0.09. Automatic Data Processing had a return on equity of 93.09% and a net margin of 19.56%. The company had revenue of $5.30 billion for the quarter, compared to analysts’ expectations of $5.22 billion. During the same period last year, the firm posted $2.52 earnings per share. Automatic Data Processing’s revenue was up 7.6% compared to the same quarter last year. As a group, sell-side 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. Shareholders of record on Friday, June 14th will be given a $1.40 dividend. This represents a $5.60 dividend on an annualized basis and a yield of 2.32%. The ex-dividend date is Friday, June 14th. Automatic Data Processing’s payout ratio is 62.50%.

Analysts Set New Price Targets

Several equities analysts have recently commented on the stock. Bank of America raised shares of Automatic Data Processing from an underperform rating to a neutral rating and boosted their target price for the stock from $217.00 to $243.00 in a report on Wednesday, January 17th. TD Cowen cut their target price on Automatic Data Processing from $253.00 to $251.00 and set a hold rating on the stock in a research note on Thursday. Barclays boosted their price objective on shares of Automatic Data Processing from $280.00 to $282.00 and gave the company an overweight rating in a research report on Thursday. JPMorgan Chase & Co. decreased their price objective on Automatic Data Processing from $254.00 to $250.00 and set an underweight rating for the company in a report on Thursday. Finally, Evercore ISI increased their target price 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 investment analysts have rated the stock with a sell rating, eight have given a hold rating and two have given a buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of Hold and an average target price of $255.42.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP Joseph Desilva sold 1,904 shares of the stock in a transaction that occurred on Thursday, February 22nd. The shares were sold at an average price of $255.00, for a total transaction of $485,520.00. Following the sale, the vice president now directly owns 17,179 shares in the company, valued at approximately $4,380,645. The transaction was disclosed in a document filed with the SEC, which is available through this link. 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 sale, the vice president now owns 17,179 shares in the company, valued at approximately $4,380,645. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP David Kwon sold 863 shares of the stock in a transaction dated 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 directly owns 8,285 shares in the company, valued at approximately $2,071,250. The disclosure for this sale can be found here. Over the last quarter, insiders sold 3,829 shares of company stock worth $965,274. Corporate insiders own 0.26% of the company’s stock.

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.