Automatic Data Processing (Nasdaq: ADP) is expected to report Q4 earnings on Aug. 1. 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 6.7% and EPS will increase 7.5%.
The average estimate for revenue is $2.81 billion. On the bottom line, the average EPS estimate is $0.57.
Revenue details
Last quarter, Automatic Data Processing reported revenue of $3.11 billion. GAAP reported sales were 7.0% higher than the prior-year quarter's $2.91 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 $0.99. GAAP EPS of $0.99 for Q3 were 8.8% higher than the prior-year quarter's $0.91 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 51.3%, 30 basis points worse than the prior-year quarter. Operating margin was 22.9%, 20 basis points worse than the prior-year quarter. Net margin was 15.5%, much about the same as the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $11.31 billion. The average EPS estimate is $2.92.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,095 members out of 1,157 rating the stock outperform, and 62 members rating it underperform. Among 394 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 382 give Automatic Data Processing a green thumbs-up, and 12 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 $63.55.
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