Automatic Data Processing (NASDAQ:ADP) Updates FY24 Earnings Guidance

Automatic Data Processing (NASDAQ:ADP) issued an update on its FY24 earnings guidance on Wednesday morning. The company provided earnings per share guidance of $9.05-$9.22 for the period, compared to the consensus earnings per share estimate of $9.12. The company issued revenue guidance of $19.08-$19.26 billion, compared to the consensus revenue estimate of $19.15 billion. Automatic Data Processing also updated its FY 2024 guidance to 9.050-9.220 EPS.

Automatic Data Processing Trading Down 0.1 %

NASDAQ:ADP traded down $0.14 during trading hours on Friday, reaching $241.89. 1,491,532 shares of the company were exchanged, compared to its average volume of 1,451,137. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.01 and a quick ratio of 1.01. The firm has a market cap of $99.37 billion, a price-to-earnings ratio of 27.00, a PEG ratio of 2.27 and a beta of 0.78. Automatic Data Processing has a 52-week low of $205.53 and a 52-week high of $256.84. The stock has a 50 day simple moving average of $245.91 and a 200 day simple moving average of $239.13.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, May 1st. The business services provider reported $2.88 EPS for the quarter, beating analysts’ consensus estimates of $2.79 by $0.09. Automatic Data Processing had a net margin of 19.56% and a return on equity of 93.09%. The business had revenue of $5.30 billion for the quarter, compared to the consensus estimate of $5.22 billion. During the same quarter last year, the firm posted $2.52 EPS. The business’s revenue for the quarter was up 7.6% compared to the same quarter last year. As a group, analysts predict that Automatic Data Processing will post 9.15 EPS for the current year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, July 1st. Investors of record on Friday, June 14th will be paid a dividend of $1.40 per share. This represents a $5.60 annualized dividend and a yield of 2.32%. The ex-dividend date is Friday, June 14th. Automatic Data Processing’s dividend payout ratio (DPR) is 62.50%.

Wall Street Analyst Weigh In

Several brokerages have weighed in on ADP. Evercore ISI raised their price objective on shares of Automatic Data Processing from $227.00 to $235.00 and gave the stock an underperform rating in a report on Tuesday, March 26th. StockNews.com lowered shares of Automatic Data Processing from a buy rating to a hold rating in a report on Tuesday, March 19th. TD Cowen decreased their price target on shares of Automatic Data Processing from $253.00 to $251.00 and set a hold rating for the company in a report on Thursday. JPMorgan Chase & Co. decreased their price target on shares of Automatic Data Processing from $254.00 to $250.00 and set an underweight rating for the company in a report on Thursday. Finally, Bank of America raised shares of Automatic Data Processing from an underperform rating to a neutral rating and lifted their price target for the company from $217.00 to $243.00 in a report on Wednesday, January 17th. Two analysts have rated the stock with a sell rating, eight have given a hold rating and two have issued a buy rating to the company. According to data from MarketBeat, Automatic Data Processing currently has an average rating of Hold and an average target price of $255.42.

Insider Buying and Selling

In other news, VP Sreenivasa Kutam sold 368 shares of Automatic Data Processing stock in a transaction that occurred on Monday, March 4th. The shares were sold at an average price of $247.01, for a total value of $90,899.68. Following the transaction, the vice president now directly owns 20,319 shares of the company’s stock, valued at $5,018,996.19. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In related news, VP Sreenivasa Kutam sold 368 shares of the business’s stock in a transaction that occurred on Monday, March 4th. The shares were sold at an average price of $247.01, for a total transaction of $90,899.68. Following the transaction, the vice president now directly owns 20,319 shares of the company’s stock, valued at $5,018,996.19. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Joseph Desilva sold 1,904 shares of the business’s stock in a transaction that occurred on Thursday, February 22nd. The stock was sold at an average price of $255.00, for a total transaction of $485,520.00. Following the completion of the sale, the vice president now directly owns 17,179 shares of the company’s stock, valued at $4,380,645. The disclosure for this sale can be found here. Insiders have sold 3,829 shares of company stock worth $965,274 in the last ninety days. 0.26% of the stock is currently owned by corporate insiders.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.