Automatic Data Processing Earnings: Here’s Why Investors Like These Results

Automatic Data Processing, Inc. (NASDAQ:ADP) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Automatic Data Processing, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.79% to $0.99 in the quarter versus EPS of $0.91 in the year-earlier quarter.

Revenue: Rose 6.54% to $3.11 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Automatic Data Processing, Inc. reported adjusted EPS income of $0.99 per share. By that measure, the company beat the mean analyst estimate of $0.98. It beat the average revenue estimate of $3.11 billion.

Quoting Management: Carlos Rodriguez, president and chief executive officer, said, “I am pleased with ADP’s third quarter results. Combined worldwide new business bookings for Employer Services and PEO Services grew 9%, and worldwide client revenue retention improved during this critical third quarter period. Our business segments continued to perform well driving good revenue growth and strong pretax margin expansion.”

Key Stats (on next page)…

Revenue increased 13.34% from $2.75 billion in the previous quarter. EPS increased 37.5% from $0.72 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.58 and has not changed. For the current year, the average estimate has moved down from a profit of $2.91 to a profit of $2.90 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)