In its upcoming report, Automatic Data Processing (ADP) is predicted by Wall Street analysts to post quarterly earnings of $2.96 per share, reflecting an increase of 2.8% compared to the same period last year. Revenues are forecasted to be $5.49 billion, representing a year-over-year increase of 4.6%.
Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Bearing this in mind, let's now explore the average estimates of specific ADP metrics that are commonly monitored and projected by Wall Street analysts.
It is projected by analysts that the 'Revenues- Interest on funds held for clients' will reach $330.29 million. The estimate indicates a change of +3% from the prior-year quarter.
Analysts' assessment points toward 'Revenues- PEO revenues' reaching $1.73 billion. The estimate indicates a year-over-year change of +4.2%.
The consensus among analysts is that 'Revenues- Revenues, other than interest on funds held for clients and PEO revenues' will reach $3.43 billion. The estimate suggests a change of +4.8% year over year.
Analysts expect 'Segment revenues- Employer Services' to come in at $3.77 billion. The estimate indicates a change of +5% from the prior-year quarter.
Analysts forecast 'Segment revenues- PEO Services' to reach $1.73 billion. The estimate points to a change of +3.7% from the year-ago quarter.
View all Key Company Metrics for ADP here>>>
Shares of ADP have experienced a change of -3.6% in the past month compared to the -4.8% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), ADP is expected to mirror the overall market performance in the near future. 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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