ADP (ADP) Set to Announce Earnings Tomorrow: Here’s What You Should Know

ADP Set to Release Earnings: What Investors Should Know

Automatic Data Processing (NASDAQ:ADP), a leading provider of payroll and human resources solutions, is scheduled to announce its latest earnings results this Wednesday before the market opens. Here’s a breakdown of what to expect.

Recent Performance Overview

In the previous quarter, ADP reported revenue of $5.18 billion, marking a 7.1% increase compared to the same period last year and surpassing analyst projections by 0.9%. While the company narrowly exceeded revenue forecasts, its guidance for the upcoming quarter was in line with Wall Street’s expectations. ADP also reported a 1.8% year-over-year rise in worksite employees, reaching 752,000.

Should You Buy or Sell ADP Before Earnings?

Curious about whether ADP is a good investment ahead of its earnings report?

Expectations for the Upcoming Quarter

Analysts anticipate that ADP’s revenue will reach $5.33 billion this quarter, reflecting a 5.5% year-over-year increase. This growth rate is slower than the 8.1% rise recorded in the same quarter last year. Adjusted earnings per share are projected to be $2.57.

ADP Total Revenue

Analyst Sentiment and Track Record

Over the past month, most analysts have maintained their forecasts for ADP, indicating confidence in the company’s performance as it approaches earnings season. Notably, ADP has consistently outperformed revenue expectations for the past two years, with an average beat of 1% each quarter.

Industry Peers: Recent Results

Some of ADP’s competitors in the professional services sector have already released their fourth-quarter results, offering insight into broader industry trends. Brown & Brown posted a 36% year-over-year increase in revenue but missed analyst estimates by 2.2%. Meanwhile, Booz Allen Hamilton saw its revenue fall by 10.2%, coming in 3.8% below expectations, and its stock declined 1.9% after the announcement.

For a deeper dive, read our full reviews of Brown & Brown’s performance and Booz Allen Hamilton’s results.

Market Trends and Price Targets

Investors in the professional services industry have remained steady ahead of earnings, with the sector’s average share price rising 1.8% over the past month. ADP’s stock price has held steady during this period. The consensus analyst price target for ADP is $289.79, compared to its current price of $258.75.

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