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ADP (ADP) Q3 Earnings Preview: What You Should Know Beyond the Headline Estimates
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In its upcoming report, Automatic Data Processing (ADP - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $2.76 per share, reflecting an increase of 9.5% compared to the same period last year. Revenues are forecasted to be $5.22 billion, representing a year-over-year increase of 6%.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific ADP metrics that are routinely monitored and predicted by Wall Street analysts.
The average prediction of analysts places 'Revenues- Interest on funds held for clients' at $285.58 million. The estimate indicates a change of +14.5% from the prior-year quarter.
Analysts' assessment points toward 'Revenues- PEO revenues' reaching $1.67 billion. The estimate suggests a change of +4.8% year over year.
Based on the collective assessment of analysts, 'Revenues- Revenues, other than interest on funds held for clients and PEO revenues' should arrive at $3.28 billion. The estimate suggests a change of +6.1% year over year.
The consensus estimate for 'Segment revenues- Employer Services' stands at $3.57 billion. The estimate indicates a year-over-year change of +6.9%.
The collective assessment of analysts points to an estimated 'Segment revenues- PEO Services' of $1.66 billion. The estimate indicates a change of +4% from the prior-year quarter.
Analysts forecast 'Average paid PEO worksite employees during the period' to reach 732. The estimate compares to the year-ago value of 710.
ADP shares have witnessed a change of -1.4% in the past month, in contrast to the Zacks S&P 500 composite's -3.2% move. With a Zacks Rank #3 (Hold), ADP is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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ADP (ADP) Q3 Earnings Preview: What You Should Know Beyond the Headline Estimates
In its upcoming report, Automatic Data Processing (ADP - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $2.76 per share, reflecting an increase of 9.5% compared to the same period last year. Revenues are forecasted to be $5.22 billion, representing a year-over-year increase of 6%.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific ADP metrics that are routinely monitored and predicted by Wall Street analysts.
The average prediction of analysts places 'Revenues- Interest on funds held for clients' at $285.58 million. The estimate indicates a change of +14.5% from the prior-year quarter.
Analysts' assessment points toward 'Revenues- PEO revenues' reaching $1.67 billion. The estimate suggests a change of +4.8% year over year.
Based on the collective assessment of analysts, 'Revenues- Revenues, other than interest on funds held for clients and PEO revenues' should arrive at $3.28 billion. The estimate suggests a change of +6.1% year over year.
The consensus estimate for 'Segment revenues- Employer Services' stands at $3.57 billion. The estimate indicates a year-over-year change of +6.9%.
The collective assessment of analysts points to an estimated 'Segment revenues- PEO Services' of $1.66 billion. The estimate indicates a change of +4% from the prior-year quarter.
Analysts forecast 'Average paid PEO worksite employees during the period' to reach 732. The estimate compares to the year-ago value of 710.
View all Key Company Metrics for ADP here>>>
ADP shares have witnessed a change of -1.4% in the past month, in contrast to the Zacks S&P 500 composite's -3.2% move. With a Zacks Rank #3 (Hold), ADP is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>