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

Automatic Data Processing (NASDAQ:ADP - Get Free Report) issued an update on its FY 2024 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 9.050-9.220 for the period, compared to the consensus earnings per share 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.

Automatic Data Processing Price Performance

Automatic Data Processing stock traded up $5.44 during midday trading on Wednesday, reaching $247.33. 2,782,113 shares of the stock were exchanged, compared to its average volume of 1,799,652. Automatic Data Processing has a 52 week low of $205.53 and a 52 week high of $256.84. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.01 and a current ratio of 1.01. The firm has a market cap of $101.60 billion, a PE ratio of 28.79, a PEG ratio of 2.29 and a beta of 0.78. The company's fifty day moving average is $246.16 and its 200-day moving average is $239.11.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings results on Wednesday, January 31st. The business services provider reported $2.13 earnings per share for the quarter, topping the consensus estimate of $2.10 by $0.03. The firm had revenue of $4.67 billion for the quarter, compared to analysts' expectations of $4.65 billion. Automatic Data Processing had a net margin of 19.14% and a return on equity of 95.22%. The business's quarterly revenue was up 6.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.96 earnings per share. On average, sell-side analysts forecast that Automatic Data Processing will post 9.14 EPS for the current year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, July 1st. Stockholders of record on Friday, June 14th will be issued a $1.40 dividend. This represents a $5.60 dividend on an annualized basis and a dividend yield of 2.26%. The ex-dividend date of this dividend is Friday, June 14th. Automatic Data Processing's payout ratio is 65.19%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Evercore ISI raised their price target on Automatic Data Processing from $227.00 to $235.00 and gave the company an underperform rating in a research report on Tuesday, March 26th. Wolfe Research upgraded shares of Automatic Data Processing from an underperform rating to a peer perform rating in a research report on Thursday, January 4th. Mizuho boosted their price objective on shares of Automatic Data Processing from $265.00 to $272.00 and gave the stock a buy rating in a report on Monday, March 11th. Royal Bank of Canada reaffirmed a sector perform rating and set a $267.00 target price on shares of Automatic Data Processing in a report on Thursday, February 1st. Finally, StockNews.com downgraded shares of Automatic Data Processing from a buy rating to a hold rating in a research note on Tuesday, March 19th. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and two have given a buy rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of Hold and a consensus price target of $258.36.

Insiders Place Their Bets

In related news, VP Don Mcguire sold 11,333 shares of Automatic Data Processing stock in a transaction on Thursday, February 1st. The shares were sold at an average price of $245.00, for a total value of $2,776,585.00. Following the sale, the vice president now owns 19,906 shares in the company, valued at $4,876,970. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In other Automatic Data Processing news, VP Don Mcguire sold 11,333 shares of the firm's stock in a transaction dated Thursday, February 1st. The shares were sold at an average price of $245.00, for a total value of $2,776,585.00. Following the completion of the sale, the vice president now directly owns 19,906 shares in the company, valued at $4,876,970. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Joseph Desilva sold 1,904 shares of the company's stock in a transaction that occurred on Thursday, February 22nd. The stock was sold at an average price of $255.00, for a total value of $485,520.00. Following the transaction, the vice president now owns 17,179 shares in the company, valued at approximately $4,380,645. The disclosure for this sale can be found here. In the last 90 days, insiders sold 15,162 shares of company stock worth $3,741,859. 0.26% of the stock is currently 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.