Wall Street analysts forecast that Automatic Data Processing (ADP) will report quarterly earnings of $2.58 per share in its upcoming release, pointing to a year-over-year increase of 9.8%. It is anticipated that revenues will amount to $5.38 billion, exhibiting an increase of 6.7% compared to the year-ago quarter.
Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
In light of this perspective, let's dive into the average estimates of certain ADP metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts expect 'Segment revenues- Employer Services' to come in at $3.57 billion. The estimate points to a change of +5.3% from the year-ago quarter.
Analysts forecast 'Revenues- Interest on funds held for clients' to reach $310.24 million. The estimate points to a change of +13.7% from the year-ago quarter.
Analysts' assessment points toward 'Revenues- PEO revenues' reaching $1.75 billion. The estimate points to a change of +5.2% from the year-ago quarter.
The consensus among analysts is that 'Segment revenues- PEO Services' will reach $1.77 billion. The estimate points to a change of +6.3% from the year-ago quarter.
The average prediction of analysts places 'Revenues- Revenues, other than interest on funds held for clients and PEO revenues' at $3.27 billion. The estimate indicates a change of +4.9% from the prior-year quarter.
It is projected by analysts that the 'Average paid PEO worksite employees during the period' will reach 762 . Compared to the present estimate, the company reported 746 in the same quarter last year.
View all Key Company Metrics for ADP here>>>
Over the past month, ADP shares have recorded returns of +0.7% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #3 (Hold), ADP will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Automatic Data Processing, Inc. (ADP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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