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

Automatic Data Processing (NASDAQ:ADP) updated its FY24 earnings guidance on Wednesday. The company provided earnings per share guidance of $9.05-$9.22 for the period, compared to the consensus earnings per share 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 Price Performance

Automatic Data Processing stock traded down $0.14 during midday trading on Friday, reaching $241.89. The company’s stock had a trading volume of 1,491,532 shares, compared to its average volume of 1,451,137. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.65. The stock has a market cap of $99.37 billion, a PE ratio of 27.00, a price-to-earnings-growth ratio of 2.27 and a beta of 0.78. 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 moving average price of $245.91 and a 200-day moving average price of $239.13.

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

Automatic Data Processing Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, July 1st. Stockholders of record on Friday, June 14th will be given a $1.40 dividend. The ex-dividend date of this dividend is Friday, June 14th. This represents a $5.60 dividend on an annualized basis and a dividend yield of 2.32%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 62.50%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on ADP shares. StockNews.com downgraded Automatic Data Processing from a buy rating to a hold rating in a report on Tuesday, March 19th. Evercore ISI raised their price target on shares of Automatic Data Processing from $227.00 to $235.00 and gave the stock an underperform rating in a report on Tuesday, March 26th. Mizuho lifted their price target on shares of Automatic Data Processing from $265.00 to $272.00 and gave the company a buy rating in a research note on Monday, March 11th. JPMorgan Chase & Co. cut their price objective on shares of Automatic Data Processing from $254.00 to $250.00 and set an underweight rating on the stock in a research report on Thursday. Finally, TD Cowen decreased their target price on Automatic Data Processing from $253.00 to $251.00 and set a hold rating for the company in a research report on Thursday. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and two have given a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of Hold and an average target price of $255.42.

Insider Transactions at Automatic Data Processing

In other news, VP Sreenivasa Kutam sold 368 shares of Automatic Data Processing stock in a transaction dated Monday, March 4th. The shares were sold at an average price of $247.01, for a total value of $90,899.68. Following the completion of the transaction, the vice president now owns 20,319 shares in the company, valued at $5,018,996.19. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, VP Sreenivasa Kutam sold 368 shares of the stock in a transaction dated Monday, March 4th. The stock was sold at an average price of $247.01, for a total transaction of $90,899.68. Following the sale, the vice president now owns 20,319 shares of the company’s stock, valued at approximately $5,018,996.19. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP David Kwon sold 863 shares of Automatic Data Processing 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 transaction, the vice president now directly owns 8,285 shares of the company’s stock, valued at approximately $2,071,250. The disclosure for this sale can be found here. In the last 90 days, insiders sold 3,829 shares of company stock worth $965,274. 0.26% of the stock is owned by company insiders.

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.