Brokerages Anticipate Automatic Data Processing (ADP) Will Post Quarterly Sales of $3.18 Billion

Brokerages forecast that Automatic Data Processing (NASDAQ:ADP) will post sales of $3.18 billion for the current quarter, Zacks reports. Seven analysts have provided estimates for Automatic Data Processing’s earnings. The highest sales estimate is $3.21 billion and the lowest is $3.13 billion. Automatic Data Processing posted sales of $2.99 billion in the same quarter last year, which suggests a positive year-over-year growth rate of 6.4%. The firm is scheduled to issue its next earnings report on Wednesday, February 7th.

On average, analysts expect that Automatic Data Processing will report full-year sales of $3.18 billion for the current financial year, with estimates ranging from $13.13 billion to $13.24 billion. For the next fiscal year, analysts anticipate that the company will post sales of $14.10 billion per share, with estimates ranging from $13.96 billion to $14.28 billion. Zacks’ sales calculations are an average based on a survey of sell-side analysts that cover Automatic Data Processing.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Thursday, November 2nd. The business services provider reported $0.91 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.85 by $0.06. The company had revenue of $3.08 billion for the quarter, compared to the consensus estimate of $3.06 billion. Automatic Data Processing had a net margin of 14.08% and a return on equity of 42.34%. The firm’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.86 EPS.

ADP has been the topic of several research analyst reports. Goldman Sachs Group raised Automatic Data Processing from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $116.02 to $135.00 in a research report on Monday, December 11th. Bank of America upgraded Automatic Data Processing from a “neutral” rating to a “buy” rating in a research report on Tuesday, December 5th. BidaskClub upgraded Automatic Data Processing from a “sell” rating to a “hold” rating in a research report on Saturday, December 2nd. Morgan Stanley reiterated an “equal weight” rating on shares of Automatic Data Processing in a research report on Wednesday, November 15th. Finally, Zacks Investment Research upgraded Automatic Data Processing from a “hold” rating to a “buy” rating and set a $126.00 target price on the stock in a research report on Wednesday, November 8th. Eleven research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The stock has an average rating of “Hold” and a consensus target price of $114.14.

Automatic Data Processing (NASDAQ:ADP) traded down $0.12 during midday trading on Thursday, hitting $117.19. The stock has a market capitalization of $52,030.00, a PE ratio of 29.74, a PEG ratio of 2.90 and a beta of 0.86. Automatic Data Processing has a one year low of $94.11 and a one year high of $121.77. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.10 and a current ratio of 1.10.

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, January 1st. Stockholders of record on Friday, December 8th will be given a $0.63 dividend. This represents a $2.52 annualized dividend and a dividend yield of 2.15%. This is an increase from Automatic Data Processing’s previous quarterly dividend of $0.57. The ex-dividend date is Thursday, December 7th. Automatic Data Processing’s payout ratio is presently 63.96%.

Several institutional investors have recently made changes to their positions in the company. AustralianSuper Pty Ltd acquired a new position in shares of Automatic Data Processing in the third quarter worth about $25,253,000. Steward Partners Investment Advisory LLC acquired a new position in shares of Automatic Data Processing in the third quarter worth about $1,880,000. Public Employees Retirement System of Ohio boosted its holdings in shares of Automatic Data Processing by 0.4% in the third quarter. Public Employees Retirement System of Ohio now owns 309,760 shares of the business services provider’s stock worth $33,863,000 after buying an additional 1,166 shares during the period. Garde Capital Inc. acquired a new position in shares of Automatic Data Processing in the third quarter worth about $987,000. Finally, Smith Shellnut Wilson LLC ADV acquired a new stake in shares of Automatic Data Processing during the third quarter worth approximately $247,000. Institutional investors and hedge funds own 78.67% of the company’s stock.

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About Automatic Data Processing

Automatic Data Processing, Inc (ADP) is a provider of human capital management (HCM) solutions to employers, offering solutions to businesses of various sizes. The Company also provides business process outsourcing solutions. Its segments include Employer Services and Professional Employer Organization (PEO) Services.

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