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

Automatic Data Processing (NASDAQ:ADP) updated its FY 2024 earnings guidance on Wednesday. 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.

Analysts Set New Price Targets

Several research firms recently commented on ADP. Bank of America raised shares of Automatic Data Processing from an underperform rating to a neutral rating and raised their price target for the stock from $217.00 to $243.00 in a research note on Wednesday, January 17th. JPMorgan Chase & Co. cut their target price 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. Royal Bank of Canada reissued a sector perform rating and set a $267.00 target price on shares of Automatic Data Processing in a research report on Thursday, February 1st. Evercore ISI boosted their price objective on shares of Automatic Data Processing from $227.00 to $235.00 and gave the stock an underperform rating in a research note on Tuesday, March 26th. Finally, TD Cowen decreased their price target on shares of Automatic Data Processing from $253.00 to $251.00 and set a hold rating for the company in a report on Thursday. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and two have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Automatic Data Processing currently has an average rating of Hold and a consensus target price of $255.42.

Automatic Data Processing Stock Down 0.1 %

NASDAQ:ADP traded down $0.14 on Friday, hitting $241.89. 1,491,532 shares of the company’s stock traded hands, 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. Automatic Data Processing has a 1 year low of $205.53 and a 1 year high of $256.84. The firm has a 50-day moving average price of $245.63 and a 200-day moving average price of $239.08. The company 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 (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 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 firm had revenue of $5.30 billion during the quarter, compared to analyst estimates of $5.22 billion. During the same period in the previous year, the company earned $2.52 EPS. The company’s revenue for the quarter was up 7.6% on a year-over-year basis. Equities analysts anticipate that Automatic Data Processing will post 9.15 EPS for the current fiscal year.

Automatic Data Processing Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 1st. Shareholders of record on Friday, June 14th will be issued a dividend of $1.40 per share. 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 dividend payout ratio is currently 62.50%.

Insider Buying and Selling

In related news, VP Sreenivasa Kutam sold 368 shares of the business’s stock in a transaction that occurred on Monday, March 4th. The shares were sold at an average price of $247.01, for a total transaction 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 sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. In related news, VP Sreenivasa Kutam sold 368 shares of the firm’s stock in a transaction on 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 of the company’s stock, valued at $5,018,996.19. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 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 value of $485,520.00. Following the completion of the sale, the vice president now directly owns 17,179 shares in the company, valued at approximately $4,380,645. The disclosure for this sale can be found here. Insiders sold a total of 3,829 shares of company stock worth $965,274 over the last three months. 0.26% of the stock is currently owned by company insiders.

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.