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Will These Numbers from Automatic Data Processing Be Good Enough for You?

By Seth Jayson - Updated Apr 7, 2017 at 12:09PM

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Checking expectations

Automatic Data Processing (Nasdaq: ADP) is expected to report Q1 earnings on Oct. 30. 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 grow 4.4% and EPS will grow 1.6%.

The average estimate for revenue is $2.63 billion. On the bottom line, the average EPS estimate is $0.62.

Revenue details
Last quarter, Automatic Data Processing booked revenue of $2.64 billion. GAAP reported sales were 5.2% higher than the prior-year quarter's $2.51 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.53. GAAP EPS of $0.53 for Q4 were 8.2% higher than the prior-year quarter's $0.49 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 48.2%, 50 basis points better than the prior-year quarter. Operating margin was 15.1%, 200 basis points better than the prior-year quarter. Net margin was 9.8%, 20 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $11.35 billion. The average EPS estimate is $2.94.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,083 members out of 1,143 rating the stock outperform, and 60 members rating it underperform. Among 371 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 363 give Automatic Data Processing a green thumbs-up, and eight 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 $59.53.

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Stocks Mentioned

Automatic Data Processing, Inc. Stock Quote
Automatic Data Processing, Inc.
ADP
$212.73 (-0.11%) $0.23

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