Automatic Data Processing (NASDAQ:ADP) Updates 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 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 Stock Performance

Shares of ADP opened at $241.89 on Wednesday. The company’s fifty day moving average is $246.29 and its 200-day moving average is $239.06. Automatic Data Processing has a 12 month low of $205.53 and a 12 month high of $256.84. The firm has a market cap of $99.37 billion, a price-to-earnings ratio of 28.16, a price-to-earnings-growth ratio of 2.29 and a beta of 0.78. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.69.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, January 31st. The business services provider reported $2.13 EPS for the quarter, topping the consensus estimate of $2.10 by $0.03. Automatic Data Processing had a net margin of 19.14% and a return on equity of 95.22%. The company had revenue of $4.67 billion for the quarter, compared to analyst estimates of $4.65 billion. During the same quarter in the prior year, the business posted $1.96 EPS. Automatic Data Processing’s quarterly revenue was up 6.3% on a year-over-year basis. Equities analysts expect that Automatic Data Processing will post 9.14 EPS for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, July 1st. Investors of record on Friday, June 14th will be paid a $1.40 dividend. The ex-dividend date is Friday, June 14th. This represents a $5.60 dividend on an annualized basis and a yield of 2.32%. Automatic Data Processing’s payout ratio is presently 65.19%.

Analyst Ratings Changes

ADP has been the topic of a number of research analyst reports. Evercore ISI raised their target price on shares of Automatic Data Processing from $227.00 to $235.00 and gave the company an underperform rating in a research note on Tuesday, March 26th. Royal Bank of Canada reiterated a sector perform rating and issued a $267.00 target price on shares of Automatic Data Processing in a research note on Thursday, February 1st. Bank of America upgraded shares of Automatic Data Processing from an underperform rating to a neutral rating and raised their target price for the company from $217.00 to $243.00 in a research note on Wednesday, January 17th. StockNews.com lowered shares of Automatic Data Processing from a buy rating to a hold rating in a research note on Tuesday, March 19th. Finally, Mizuho raised their price target on shares of Automatic Data Processing from $265.00 to $272.00 and gave the stock a buy rating in a research report on Monday, March 11th. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have given a buy rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of Hold and a consensus price target of $258.36.

Insider Activity at Automatic Data Processing

In related news, VP Don Mcguire sold 11,333 shares of Automatic Data Processing stock in a transaction dated Thursday, February 1st. The shares were sold at an average price of $245.00, for a total transaction of $2,776,585.00. Following the completion of the transaction, the vice president now directly owns 19,906 shares of the company’s stock, valued at approximately $4,876,970. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other news, VP David Kwon sold 863 shares of Automatic Data Processing stock in a transaction that occurred on Tuesday, February 6th. The shares were sold at an average price of $250.00, for a total transaction of $215,750.00. Following the completion of the sale, the vice president now owns 8,285 shares in the company, valued at approximately $2,071,250. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Don Mcguire sold 11,333 shares of Automatic Data Processing stock in a transaction that occurred on Thursday, February 1st. The stock was sold at an average price of $245.00, for a total transaction of $2,776,585.00. Following the sale, the vice president now owns 19,906 shares of the company’s stock, valued at approximately $4,876,970. The disclosure for this sale can be found here. Insiders sold 15,162 shares of company stock valued at $3,741,859 in the last ninety days. Insiders own 0.26% of the company’s stock.

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.