Automatic Data Processing (Nasdaq: ADP ) is expected to report Q3 earnings on May 3. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Automatic Data Processing's revenues will expand 6.4% and EPS will grow 6.5%.
The average estimate for revenue is $3.11 billion. On the bottom line, the average EPS estimate is $0.98.
Last quarter, Automatic Data Processing notched revenue of $2.75 billion. GAAP reported sales were 7.9% higher than the prior-year quarter's $2.45 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.72. GAAP EPS of $0.80 for Q2 were 5.3% higher than the prior-year quarter's $0.76 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 47.0%, 20 basis points better than the prior-year quarter. Operating margin was 15.0%, 20 basis points better than the prior-year quarter. Net margin was 14.8%, 50 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $11.31 billion. The average EPS estimate is $2.91.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,097 members out of 1,158 rating the stock outperform, and 61 members rating it underperform. Among 394 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 387 give Automatic Data Processing a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Automatic Data Processing is outperform, with an average price target of $62.05.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Automatic Data Processing. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Automatic Data Processing to My Watchlist.