What is Zacks Research's Forecast for ADP FY2025 Earnings?

Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) - Investment analysts at Zacks Research boosted their FY2025 EPS estimates for shares of Automatic Data Processing in a research note issued on Wednesday, May 21st. Zacks Research analyst R. Department now forecasts that the business services provider will earn $9.96 per share for the year, up from their prior forecast of $9.90. The consensus estimate for Automatic Data Processing's current full-year earnings is $9.93 per share. Zacks Research also issued estimates for Automatic Data Processing's FY2026 earnings at $10.81 EPS and Q1 2027 earnings at $2.57 EPS.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its quarterly earnings data on Wednesday, April 30th. The business services provider reported $3.06 EPS for the quarter, topping analysts' consensus estimates of $2.97 by $0.09. The company had revenue of $5.55 billion during the quarter, compared to the consensus estimate of $5.49 billion. Automatic Data Processing had a net margin of 19.76% and a return on equity of 80.86%. The firm's revenue for the quarter was up 5.7% compared to the same quarter last year. During the same period last year, the firm earned $2.88 EPS.

Other equities research analysts have also recently issued research reports about the stock. Barclays increased their target price on shares of Automatic Data Processing from $325.00 to $350.00 and gave the stock an "overweight" rating in a research report on Monday, February 3rd. Jefferies Financial Group lifted their target price on shares of Automatic Data Processing from $290.00 to $305.00 and gave the company a "hold" rating in a research note on Thursday, January 30th. Wall Street Zen lowered Automatic Data Processing from a "buy" rating to a "hold" rating in a research report on Wednesday, February 5th. TD Securities lifted their price objective on Automatic Data Processing from $298.00 to $321.00 and gave the company a "hold" rating in a research report on Wednesday, May 21st. Finally, Stifel Nicolaus boosted their price objective on Automatic Data Processing to $305.00 and gave the stock a "buy" rating in a research note on Friday, May 2nd. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and three have issued a buy rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $305.64.

Automatic Data Processing Price Performance

Shares of ADP traded down $0.72 during mid-day trading on Friday, reaching $325.00. The company had a trading volume of 439,978 shares, compared to its average volume of 1,700,521. The company's 50-day moving average is $302.14 and its 200-day moving average is $301.34. Automatic Data Processing has a twelve month low of $231.27 and a twelve month high of $329.12. The company has a market capitalization of $131.92 billion, a P/E ratio of 33.89, a P/E/G ratio of 3.62 and a beta of 0.76. The company has a debt-to-equity ratio of 0.59, a current ratio of 1.00 and a quick ratio of 1.00.

Automatic Data Processing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 1st. Shareholders of record on Friday, June 13th will be paid a $1.54 dividend. The ex-dividend date of this dividend is Friday, June 13th. This represents a $6.16 dividend on an annualized basis and a yield of 1.90%. Automatic Data Processing's payout ratio is presently 63.05%.

Insiders Place Their Bets

In other Automatic Data Processing news, VP Christopher D'ambrosio sold 478 shares of the firm's stock in a transaction dated Thursday, April 10th. The stock was sold at an average price of $293.14, for a total transaction of $140,120.92. Following the transaction, the vice president now owns 7,364 shares in the company, valued at approximately $2,158,682.96. This trade represents a 6.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Brian L. Michaud sold 1,500 shares of the business's stock in a transaction dated Tuesday, April 1st. The stock was sold at an average price of $305.38, for a total value of $458,070.00. Following the transaction, the vice president now owns 12,073 shares of the company's stock, valued at $3,686,852.74. The trade was a 11.05% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 2,451 shares of company stock valued at $743,024. Company insiders own 0.21% of the company's stock.

Hedge Funds Weigh In On Automatic Data Processing

A number of hedge funds and other institutional investors have recently made changes to their positions in ADP. Grassi Investment Management bought a new position in shares of Automatic Data Processing during the 4th quarter valued at about $227,000. Pure Financial Advisors LLC acquired a new position in shares of Automatic Data Processing in the fourth quarter valued at approximately $200,000. Beaumont Financial Advisors LLC increased its position in shares of Automatic Data Processing by 46.8% during the fourth quarter. Beaumont Financial Advisors LLC now owns 3,239 shares of the business services provider's stock worth $948,000 after acquiring an additional 1,032 shares in the last quarter. Sheets Smith Wealth Management raised its holdings in shares of Automatic Data Processing by 26.9% during the fourth quarter. Sheets Smith Wealth Management now owns 2,451 shares of the business services provider's stock worth $717,000 after acquiring an additional 520 shares during the period. Finally, XML Financial LLC bought a new stake in Automatic Data Processing in the 4th quarter valued at $205,000. 80.03% of the stock is owned by institutional investors.

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.