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

Automatic Data Processing (NASDAQ:ADP) updated its FY 2027 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 12.120-12.340 for the period, compared to the consensus earnings per share 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.

Wall Street Analysts Forecast Growth

Several research firms have commented on ADP. BMO Capital Markets dropped their price objective on shares of Automatic Data Processing from $281.00 to $234.00 and set a “market perform” rating for the company in a research note on Tuesday, April 7th. Jefferies Financial Group lowered their target price on shares of Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. Cantor Fitzgerald lifted their price target on shares of Automatic Data Processing from $244.00 to $295.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 22nd. Weiss Ratings upgraded shares of Automatic Data Processing from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, July 21st. Finally, Guggenheim reissued a “buy” rating and issued a $270.00 price objective on shares of Automatic Data Processing in a research report on Tuesday, July 21st. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Automatic Data Processing presently has a consensus rating of “Hold” and a consensus price target of $256.00.

Automatic Data Processing Stock Up 5.3%

NASDAQ:ADP traded up $13.95 during trading hours on Wednesday, reaching $278.12. The company’s stock had a trading volume of 1,510,511 shares, compared to its average volume of 3,136,721. The stock has a 50 day moving average price of $233.13 and a two-hundred day moving average price of $224.26. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.04 and a current ratio of 1.04. The company has a market capitalization of $111.17 billion, a P/E ratio of 26.01 and a beta of 0.83. Automatic Data Processing has a 12 month low of $188.16 and a 12 month high of $315.98.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating analysts’ consensus estimates of $2.59 by $0.05. The company had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The firm’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same quarter last year, the company earned $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Equities analysts predict that Automatic Data Processing will post 11.08 EPS for the current fiscal year.

Automatic Data Processing News Roundup

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Quarterly results exceeded expectations. ADP reported fiscal Q4 adjusted earnings of $2.64 per share, above the $2.59 analyst consensus, while revenue of $5.47 billion topped the $5.44 billion estimate. Revenue rose 6.8% year over year, and EPS increased from $2.26 in the prior-year quarter. Automatic Data Processing Tops Q4 Earnings and Revenue Estimates
• Positive Sentiment: Broad-based operating momentum supported profitability. Growth in employer services and human resources outsourcing, higher client-funds income and productivity gains helped expand margins and lift profits, reinforcing confidence in ADP’s recurring-revenue business model. ADP Q4 Earnings Beat Estimates on Revenue Growth and Margin Gains
• Positive Sentiment: Fiscal 2027 guidance indicates continued growth. ADP projected earnings per share of $12.12 to $12.34 and revenue of $23.0 billion to $23.3 billion. The midpoint of both ranges is broadly in line with Wall Street expectations, reducing concerns about a disappointing outlook. ADP Targets More Gains Ahead After Quarterly Growth
• Neutral Sentiment: ADP’s preliminary employment indicator showed U.S. private employers added an average of 15,000 jobs per week through July 11. The subdued hiring pace could weigh on payroll volumes, although it may also support demand for efficiency and HR-management services. ADP National Employment Report Preliminary Estimate
• Negative Sentiment: Some valuation caution remains. The reported analyst price-target median of $242 is below the stock’s recent trading level, while recent insider activity consisted of sales rather than purchases. These factors could limit upside after the earnings-driven advance.

Hedge Funds Weigh In On Automatic Data Processing

Institutional investors and hedge funds have recently bought and sold shares of the company. Reston Wealth Management LLC grew its holdings in Automatic Data Processing by 5.8% during the fourth quarter. Reston Wealth Management LLC now owns 892 shares of the business services provider’s stock worth $229,000 after acquiring an additional 49 shares during the period. LMR Partners LLP grew its stake in shares of Automatic Data Processing by 1.7% during the 2nd quarter. LMR Partners LLP now owns 3,047 shares of the business services provider’s stock worth $940,000 after purchasing an additional 50 shares during the period. First Foundation Advisors grew its stake in shares of Automatic Data Processing by 5.9% during the 3rd quarter. First Foundation Advisors now owns 1,019 shares of the business services provider’s stock worth $299,000 after purchasing an additional 57 shares during the period. Ausdal Financial Partners Inc. increased its holdings in shares of Automatic Data Processing by 7.7% during the 3rd quarter. Ausdal Financial Partners Inc. now owns 813 shares of the business services provider’s stock valued at $238,000 after purchasing an additional 58 shares in the last quarter. Finally, Great Valley Advisor Group Inc. increased its holdings in shares of Automatic Data Processing by 2.1% during the 4th quarter. Great Valley Advisor Group Inc. now owns 2,824 shares of the business services provider’s stock valued at $727,000 after purchasing an additional 59 shares in the last quarter. 80.03% of the stock is owned by hedge funds and other institutional investors.

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.