For the quarter ended March 2025, Automatic Data Processing (ADP) reported revenue of $5.55 billion, up 5.7% over the same period last year. EPS came in at $3.06, compared to $2.88 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $5.49 billion, representing a surprise of +1.09%. The company delivered an EPS surprise of +3.38%, with the consensus EPS estimate being $2.96.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $3.41 billion versus $3.43 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +4.4% change.
- Revenues- Interest on funds held for clients: $355.20 million compared to the $333.15 million average estimate based on four analysts. The reported number represents a change of +10.7% year over year.
- Revenues- PEO revenues: $1.79 billion versus the four-analyst average estimate of $1.73 billion. The reported number represents a year-over-year change of +7.4%.
- Segment revenues- Employer Services: $3.77 billion compared to the $3.78 billion average estimate based on three analysts. The reported number represents a change of +4.9% year over year.
- Segment revenues- PEO Services: $1.79 billion compared to the $1.72 billion average estimate based on two analysts. The reported number represents a change of +7.4% year over year.
View all Key Company Metrics for ADP here>>>
Shares of ADP have returned -3.5% over the past month versus the Zacks S&P 500 composite's -0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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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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