Analysts on Wall Street project that Automatic Data Processing (ADP) will announce quarterly earnings of $2.59 per share in its forthcoming report, representing an increase of 14.6% year over year. Revenues are projected to reach $5.43 billion, increasing 5.9% from the same quarter last year.
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.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain ADP metrics that are commonly tracked and forecasted by Wall Street analysts.
Based on the collective assessment of analysts, 'Segment revenues- Employer Services' should arrive at $3.67 billion. The estimate points to a change of +5.9% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- Interest on funds held for clients' of $340.62 million. The estimate suggests a change of +10.7% year over year.
The consensus estimate for 'Revenues- PEO revenues' stands at $1.78 billion. The estimate indicates a change of +7% from the prior-year quarter.
It is projected by analysts that the 'Segment revenues- PEO Services' will reach $1.76 billion. The estimate suggests a change of +5.9% year over year.
The consensus among analysts is that 'Revenues- Revenues, other than interest on funds held for clients and PEO revenues' will reach $3.33 billion. The estimate indicates a year-over-year change of +5.4%.
View all Key Company Metrics for ADP here>>>ADP shares have witnessed a change of +12.3% in the past month, in contrast to the Zacks S&P 500 composite's +0.6% move. With a Zacks Rank #3 (Hold), ADP is expected closely follow the overall market performance in the near term. 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 Report
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