Automatic Data Processing (NASDAQ:ADP) Updates FY 2027 Earnings Guidance

Automatic Data Processing (NASDAQ:ADP) issued an update on its FY 2027 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 12.120-12.340 for the period, compared to the consensus EPS estimate of 12.190. The company issued revenue guidance of $23.0 billion-$23.3 billion, compared to the consensus revenue estimate of $23.1 billion.

Automatic Data Processing Price Performance

Shares of ADP stock opened at $264.17 on Wednesday. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63. Automatic Data Processing has a 12-month low of $188.16 and a 12-month high of $315.98. The firm has a fifty day moving average of $233.13 and a 200-day moving average of $224.26. The firm has a market capitalization of $105.60 billion, a price-to-earnings ratio of 24.64 and a beta of 0.83.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, topping the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The firm had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.44 billion. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, equities research analysts forecast that Automatic Data Processing will post 11.08 earnings per share for the current year.

Analysts Set New Price Targets

ADP has been the topic of several recent analyst reports. Morgan Stanley cut their price objective on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a report on Tuesday, April 28th. Guggenheim reiterated a “buy” rating and set a $270.00 target price on shares of Automatic Data Processing in a report on Tuesday, July 21st. Citigroup cut their price target on Automatic Data Processing from $265.00 to $230.00 and set a “neutral” rating on the stock in a report on Thursday, April 30th. Weiss Ratings raised Automatic Data Processing from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, July 21st. Finally, Cantor Fitzgerald lifted their target price on Automatic Data Processing from $244.00 to $295.00 and gave the company an “overweight” rating in a research report on Wednesday, July 22nd. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $256.00.

Institutional Trading of Automatic Data Processing

Hedge funds and other institutional investors have recently modified their holdings of the stock. Wellington Management Group LLP grew its stake in Automatic Data Processing by 8.0% in the fourth quarter. Wellington Management Group LLP now owns 7,374,504 shares of the business services provider’s stock valued at $1,896,944,000 after purchasing an additional 544,210 shares in the last quarter. Alyeska Investment Group L.P. acquired a new stake in shares of Automatic Data Processing in the 4th quarter valued at approximately $98,653,000. Weiss Asset Management LP bought a new position in shares of Automatic Data Processing in the fourth quarter valued at $82,469,000. Credit Agricole S A acquired a new position in Automatic Data Processing during the third quarter worth $94,021,000. Finally, MUFG Securities EMEA plc bought a new stake in Automatic Data Processing during the second quarter worth $69,760,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP’s product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.