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Here's What Key Metrics Tell Us About ADP (ADP) Q2 Earnings
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Automatic Data Processing (ADP - Free Report) reported $4.39 billion in revenue for the quarter ended December 2022, representing a year-over-year increase of 9.1%. EPS of $1.96 for the same period compares to $1.65 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $4.38 billion, representing a surprise of +0.34%. The company delivered an EPS surprise of +0.51%, with the consensus EPS estimate being $1.95.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Interest on funds held for Employer Services clients: $187.20 million versus $195.21 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +76.6% change.
Revenues excluding interest on funds held for Employer Services clients and PEO: $2.70 billion versus $2.71 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +5.5% change.
Revenue-PEO revenues: $1.50 billion compared to the $1.48 billion average estimate based on four analysts. The reported number represents a change of +10.6% year over year.
Revenue-Employer Services: $2.89 billion compared to the $2.86 billion average estimate based on four analysts. The reported number represents a change of +8.3% year over year.
Revenue-PEO Services: $1.50 billion compared to the $1.52 billion average estimate based on three analysts. The reported number represents a change of +10.6% year over year.
Shares of ADP have returned -0.8% over the past month versus the Zacks S&P 500 composite's +4.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Here's What Key Metrics Tell Us About ADP (ADP) Q2 Earnings
Automatic Data Processing (ADP - Free Report) reported $4.39 billion in revenue for the quarter ended December 2022, representing a year-over-year increase of 9.1%. EPS of $1.96 for the same period compares to $1.65 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $4.38 billion, representing a surprise of +0.34%. The company delivered an EPS surprise of +0.51%, with the consensus EPS estimate being $1.95.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
View all Key Company Metrics for ADP here>>>
Shares of ADP have returned -0.8% over the past month versus the Zacks S&P 500 composite's +4.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.