- Adjusted EPS for Q4 was $2.09, higher than the previous year’s $1.89 and above the estimate of $2.06.
- Revenue reached $4.77 billion, representing a 6.5% year-over-year increase, surpassing the estimate of $4.74 billion.
- Employer services revenue was $3.22 billion, up 6.5% year-over-year, just below the estimate of $3.23 billion.
- PEO (Professional Employer Organization) services revenue amounted to $1.55 billion, a 6.4% year-over-year increase, exceeding the estimate of $1.52 billion.
- Pretax profit stood at $1.09 billion, an 8.3% increase year-over-year, slightly below the estimate of $1.11 billion.
- Employer services pretax earnings were $1.06 billion, marking a 14% year-over-year rise, compared to an estimate of $1.04 billion.
- Employer services pretax margin improved to 33% from 30.8% year-over-year, beating the estimate of 32.3%.
- Forecast for 2025 indicates adjusted EPS growth of 8% to 10%.
- Revenue forecast for 2025 is expected to rise by 5% to 6%.
- Employer services new bookings for 2025 are anticipated to increase by 4% to 7%.
- Analyst ratings: 3 buys, 16 holds, and 2 sells.
Automatic Data Processing on Smartkarma
Analyst coverage on Smartkarma for Automatic Data Processing (ADP) by Baptista Research provides an optimistic outlook on the company’s financial performance and strategic investments. In the report titled “Automatic Data Processing (ADP): Investments in Gen AI for Improving Service and Sales Efficiency! – Major Drivers,” Baptista Research highlights ADP’s robust third-quarter fiscal performance for 2024. Key figures such as a 7% revenue growth and a 14% adjusted diluted EPS growth demonstrate solid financial performance amidst a competitive business landscape. ADP’s strong Employer Services (ES) new business bookings growth is also emphasized, setting the company on course to meet its full-year outlook.
In another report by Baptista Research titled “Automatic Data Processing (ADP): What Is The Potential of Its Gen AI Investment? – Major Drivers,” ADP’s Q2 2024 earnings are spotlighted. The company exhibited a strong quarter with 6% revenue growth and 9% adjusted EPS growth. Particularly notable was the significant growth in ADP’s small business portfolio and positive performance in the mid-market and international business segments. The report also mentions ADP’s steady 2% growth in Employer Services paid for control, indicating consistent client additions and moderate employee growth. Overall, these analyst insights underscore ADP’s positive trajectory and strategic investments in Gen AI for enhancing service and sales efficiency.
A look at Automatic Data Processing Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Automatic Data Processing, Inc. is positioned for a bright future according to the Smartkarma Smart Scores analysis. With solid scores across the board, the company is rated highly for its growth potential and momentum in the market. Its services in human resource, payroll, tax, and benefits administration solutions are expected to drive sustained growth in the long term.
Furthermore, Automatic Data Processing demonstrates resilience and offers a decent dividend to investors. While the company may not be a top scorer in terms of value, its overall outlook remains positive. As a global leader in business outsourcing solutions, Automatic Data Processing, Inc. continues to adapt to market demands and deliver value to its clients, making it an attractive prospect for long-term investors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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