Brokerages Anticipate Automatic Data Processing (NASDAQ:ADP) Will Post Quarterly Sales of $4.06 Billion

Equities research analysts predict that Automatic Data Processing (NASDAQ:ADP) will report sales of $4.06 billion for the current fiscal quarter, Zacks Investment Research reports. Six analysts have issued estimates for Automatic Data Processing’s earnings, with the lowest sales estimate coming in at $4.04 billion and the highest estimate coming in at $4.08 billion. Automatic Data Processing reported sales of $3.85 billion in the same quarter last year, which would suggest a positive year over year growth rate of 5.5%. The company is expected to issue its next quarterly earnings results on Wednesday, May 6th.

According to Zacks, analysts expect that Automatic Data Processing will report full year sales of $14.93 billion for the current year, with estimates ranging from $14.90 billion to $14.96 billion. For the next financial year, analysts forecast that the firm will report sales of $15.88 billion, with estimates ranging from $15.71 billion to $16.03 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of research analysts that cover Automatic Data Processing.

Automatic Data Processing (NASDAQ:ADP) last released its earnings results on Wednesday, January 29th. The business services provider reported $1.52 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.44 by $0.08. The firm had revenue of $3.67 billion during the quarter, compared to analysts’ expectations of $3.69 billion. Automatic Data Processing had a net margin of 16.97% and a return on equity of 46.96%. Automatic Data Processing’s revenue for the quarter was up 5.1% on a year-over-year basis. During the same period in the previous year, the company earned $1.34 EPS.

ADP has been the topic of a number of research analyst reports. Moffett Nathanson lowered shares of Automatic Data Processing from a “buy” rating to a “neutral” rating in a report on Tuesday, January 7th. Citigroup lifted their price target on shares of Automatic Data Processing from $170.00 to $185.00 and gave the company a “neutral” rating in a report on Tuesday, January 14th. Morgan Stanley lifted their price target on shares of Automatic Data Processing from $174.00 to $180.00 and gave the company an “equal weight” rating in a report on Thursday, January 23rd. Credit Suisse Group reiterated a “buy” rating and issued a $190.00 price target on shares of Automatic Data Processing in a report on Sunday, February 2nd. Finally, BidaskClub upgraded shares of Automatic Data Processing from a “hold” rating to a “buy” rating in a report on Wednesday, January 29th. Ten equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company. Automatic Data Processing has an average rating of “Hold” and an average price target of $186.20.

Shares of ADP traded up $1.14 during mid-day trading on Friday, reaching $181.25. The company had a trading volume of 1,566,513 shares, compared to its average volume of 1,985,642. The stock has a market cap of $78.26 billion, a price-to-earnings ratio of 32.02, a price-to-earnings-growth ratio of 2.24 and a beta of 0.87. The firm has a fifty day simple moving average of $174.09 and a 200-day simple moving average of $167.66. Automatic Data Processing has a fifty-two week low of $148.15 and a fifty-two week high of $181.28. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.25.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 2.01%. The ex-dividend date is Thursday, March 12th. Automatic Data Processing’s dividend payout ratio (DPR) is 66.79%.

Automatic Data Processing announced that its board has authorized a stock buyback program on Tuesday, November 12th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the business services provider to reacquire up to 6.8% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its shares are undervalued.

In other news, VP Donald Weinstein sold 2,468 shares of the business’s stock in a transaction dated Thursday, February 6th. The shares were sold at an average price of $180.00, for a total value of $444,240.00. Following the completion of the sale, the vice president now owns 26,578 shares of the company’s stock, valued at approximately $4,784,040. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Don Mcguire sold 326 shares of the business’s stock in a transaction dated Wednesday, January 15th. The stock was sold at an average price of $172.07, for a total transaction of $56,094.82. Following the completion of the sale, the vice president now directly owns 6,916 shares of the company’s stock, valued at approximately $1,190,036.12. The disclosure for this sale can be found here. Insiders sold a total of 14,528 shares of company stock valued at $2,556,051 in the last three months. Insiders own 0.31% of the company’s stock.

Large investors have recently made changes to their positions in the stock. Sugarloaf Wealth Management LLC bought a new stake in shares of Automatic Data Processing during the 4th quarter valued at about $27,000. Raab & Moskowitz Asset Management LLC acquired a new position in Automatic Data Processing during the 4th quarter valued at about $28,000. Cranbrook Wealth Management LLC boosted its stake in Automatic Data Processing by 361.1% during the 4th quarter. Cranbrook Wealth Management LLC now owns 166 shares of the business services provider’s stock valued at $28,000 after purchasing an additional 130 shares during the period. Horan Capital Advisors LLC. acquired a new position in Automatic Data Processing during the 3rd quarter valued at about $31,000. Finally, Pacitti Group Inc. acquired a new position in Automatic Data Processing during the 4th quarter valued at about $32,000. 80.12% of the stock is owned by institutional investors and hedge funds.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides business process outsourcing services worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers various human resources (HR) outsourcing and technology-based human capital management solutions.

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Earnings History and Estimates for Automatic Data Processing (NASDAQ:ADP)

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