Earnings and Growth Analysis : Automatic Data Processing (NASDAQ:ADP)

Earnings results for Automatic Data Processing (NASDAQ:ADP)

Automatic Data Processing, Inc. is expected* to report earnings on 07/28/2021 before market open. The report will be for the fiscal Quarter ending Jun 2021. According to Zacks Investment Research, based on 10 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.13. The reported EPS for the same quarter last year was $1.1400000000000001.

Automatic Data Processing last posted its quarterly earnings data on April 27th, 2021. The business services provider reported $1.89 EPS for the quarter, beating the consensus estimate of $1.82 by $0.07. The firm earned $4.10 billion during the quarter, compared to analyst estimates of $4.08 billion. Its quarterly revenue was up 1.3% on a year-over-year basis. Automatic Data Processing has generated $5.92 earnings per share over the last year and currently has a price-to-earnings ratio of 36.0. Automatic Data Processing has confirmed that its next quarterly earnings report will be published on Wednesday, July 28th, 2021. Automatic Data Processing will be holding an earnings conference call on Wednesday, July 28th at 8:30 AM Eastern. Interested parties can register for or listen to the call using this link.

Analyst Opinion on Automatic Data Processing (NASDAQ:ADP)

14 Wall Street analysts have issued ratings and price targets for Automatic Data Processing in the last 12 months. Their average twelve-month price target is $180.08, predicting that the stock has a possible downside of 13.38%. The high price target for ADP is $220.00 and the low price target for ADP is $142.00. There are currently 2 sell ratings, 7 hold ratings and 5 buy ratings for the stock, resulting in a consensus rating of “Hold.”

Automatic Data Processing has received a consensus rating of Hold. The company’s average rating score is 2.21, and is based on 5 buy ratings, 7 hold ratings, and 2 sell ratings. According to analysts’ consensus price target of $180.08, Automatic Data Processing has a forecasted downside of 13.4% from its current price of $207.89. Automatic Data Processing has only been the subject of 3 research reports in the past 90 days.

Dividend Strength: Automatic Data Processing (NASDAQ:ADP)

Automatic Data Processing pays a meaningful dividend of 1.80%, higher than the bottom 25% of all stocks that pay dividends. Automatic Data Processing has been increasing its dividend for 47 years. The dividend payout ratio of Automatic Data Processing is 62.84%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Automatic Data Processing will have a dividend payout ratio of 56.88% next year. This indicates that Automatic Data Processing will be able to sustain or increase its dividend.

Insiders buying/selling: Automatic Data Processing (NASDAQ:ADP)

In the past three months, Automatic Data Processing insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $1,664,058.00 in company stock. Only 0.34% of the stock of Automatic Data Processing is held by insiders. 78.99% of the stock of Automatic Data Processing is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Automatic Data Processing (NASDAQ:ADP

Earnings for Automatic Data Processing are expected to grow by 9.92% in the coming year, from $5.95 to $6.54 per share. The P/E ratio of Automatic Data Processing is 36.03, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 22.45. The P/E ratio of Automatic Data Processing is 36.03, which means that it is trading at a less expensive P/E ratio than the Business Services sector average P/E ratio of about 51.96. Automatic Data Processing has a PEG Ratio of 2.63. PEG Ratios above 1 indicate that a company could be overvalued. Automatic Data Processing has a P/B Ratio of 15.54. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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