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What Awaits Automatic Data Processing (ADP) in Q4 Earnings?

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Automatic Data Processing, Inc. (ADP - Free Report) is scheduled to report fourth-quarter fiscal 2022 results on Jul 27, before market open.

Let’s check out how things have shaped up for this announcement.

Expectations This Time Around

The Zacks Consensus Estimate for revenues for the fiscal fourth quarter stands at $4.05 billion, indicating 8.5% growth from the year-ago fiscal quarter’s reported figure.

The consensus mark for Employer Services revenues is pegged at $2.67 billion, implying growth of 5.5% from the year-ago fiscal quarter’s reported figure. The uptick is likely to have been aided by growth in new business bookings, strong retention and pays per control trends.

The consensus estimate for PEO Services revenues is pegged at $1.38 billion, indicating growth of 14% from the year-earlier fiscal quarter’s reported number. The upside is likely to have been aided by an increase in average worksite employees paid by PEO Services.

The consensus mark for Interest on funds held for clients’ revenues is pegged at $122 million, indicating growth of 18.4% from the prior-year fiscal period’s reported figure. Strength across Automatic Data Processing’s average client funds balances might have aided its segmental growth.

The consensus estimate for earnings stands at $1.48 per share, implying growth of 23.3% from the year-ago fiscal quarter’s reported figure.

What Our Model Says

Our proven model conclusively predicts an earnings beat for Automatic Data Processing this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Automatic Data Processing has an Earnings ESP of +2.86% and a Zacks Rank #3.

Other Stocks to Consider

Here are a few other stocks worth considering from the broader Zacks Business Services sector, as our model shows that these have the right combination of elements to beat on second-quarter 2022 earnings:

Lumen Technologies, Inc. (LUMN - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LUMN has a trailing four-quarter earnings surprise of 17.6%, on average.

Booz Allen Hamilton Holding Corporation (BAH - Free Report) has an Earnings ESP of +4.41% and a Zacks Rank of 3.

Booz Allen has an expected earnings growth rate of 3.3% for the current year. BAH has a trailing four-quarter earnings surprise of 9.5%, on average.

Avis Budget Group, Inc. (CAR - Free Report) has an Earnings ESP of +22.33% and is Zacks #2 Ranked.

Avis Budget has an expected earnings growth rate of 74.4% for the current year. CAR delivered a trailing four-quarter earnings surprise of 102%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

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