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ADP has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all trailing four quarters. The average surprise is 3.1%.
Q1 Expectations
The Zacks Consensus Estimate for the top line is currently pegged at $4.51 billion, up 7% from the year-ago actual figure. Strong segmental performance can be attributed to such an increase in revenues.
Automatic Data Processing, Inc. Price and EPS Surprise
The consensus estimate for earnings per share is pegged at $2.04, up 9.7% year over year. Strong revenue performance is likely to have driven such an increase in the bottom line.
Segmental Expectations
Our estimate for first-quarter 2024 revenues from Employer Service is currently pegged at $3.02 billion, up 8.2% from the year-ago reported figure. The company has seen an uptick in bookings and we expect such momentum to continue, which will likely contribute to such growth.
Our estimate for PEO services revenues is currently pegged at $1.48 billion, up 3.6% from the year-ago reported figure. The increase can be due to the expected increase in bookings. Our estimate for Interest on Funds held for clients is currently pegged at $201.6 million, indicating a 43% increase from the year-ago reported figure.
Our estimate for Average Paid PEO Worksite Employees for the first quarter is pegged at 742. Changes in Pay per control is expected to be 4.5% in the to-be-reported quarter.
What Our Model Says
Our proven model predicts an earnings beat for ADP 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 before they’re reported with our Earnings ESP Filter.
Here are a few stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings this season.
Verisk Analytics (VRSK - Free Report) : The company’s revenues are expected to decline 11.1% from the year-ago figure, while the bottom line is expected to match the prior-year figure. VRSK has beaten the Zacks Consensus Estimate in three of the previous four quarters and matched on one instance, with an average surprise of 9.9%. The company has an Earnings ESP of +5.23% and a Zacks Rank of 3. VRSK is expected to release its third-quarter earnings on Nov 1.
Aptiv (APTV - Free Report) : The company’s revenues are expected to increase 7.1% from the year-ago figure and the bottom line is expected to indicate an 8.6% decline from the prior-year figure. APTV has beaten the Zacks Consensus Estimate in all of the previous four quarters, with an average surprise of 13.4%. The company has an Earnings ESP of +5.69% and a Zacks Rank of 3. APTV is expected to release its third-quarter earnings on Nov 2.
Trane Technologies (TT - Free Report) : The company’s revenues and bottom line are expected to indicate growth of 9.3% and 17.2%, respectively, from the year-ago figure. TT has beaten the Zacks Consensus Estimate in all the previous four quarters, with an average surprise of 7.3%. The company has an Earnings ESP of +0.85% and a Zacks Rank of 2. TT is expected to release its third-quarter earnings on Nov 1.
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What's in the Offing for Automatic Data (ADP) in Q1 Earnings?
Automatic Data Processing, Inc. (ADP - Free Report) is scheduled to release its first-quarter fiscal 2024 results on Oct 25 before market open.
ADP has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all trailing four quarters. The average surprise is 3.1%.
Q1 Expectations
The Zacks Consensus Estimate for the top line is currently pegged at $4.51 billion, up 7% from the year-ago actual figure. Strong segmental performance can be attributed to such an increase in revenues.
Automatic Data Processing, Inc. Price and EPS Surprise
Automatic Data Processing, Inc. price-eps-surprise | Automatic Data Processing, Inc. Quote
The consensus estimate for earnings per share is pegged at $2.04, up 9.7% year over year. Strong revenue performance is likely to have driven such an increase in the bottom line.
Segmental Expectations
Our estimate for first-quarter 2024 revenues from Employer Service is currently pegged at $3.02 billion, up 8.2% from the year-ago reported figure. The company has seen an uptick in bookings and we expect such momentum to continue, which will likely contribute to such growth.
Our estimate for PEO services revenues is currently pegged at $1.48 billion, up 3.6% from the year-ago reported figure. The increase can be due to the expected increase in bookings. Our estimate for Interest on Funds held for clients is currently pegged at $201.6 million, indicating a 43% increase from the year-ago reported figure.
Our estimate for Average Paid PEO Worksite Employees for the first quarter is pegged at 742. Changes in Pay per control is expected to be 4.5% in the to-be-reported quarter.
What Our Model Says
Our proven model predicts an earnings beat for ADP 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 before they’re reported with our Earnings ESP Filter.
ADP has an Earnings ESP of +1.35% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Stocks to Consider
Here are a few stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings this season.
Verisk Analytics (VRSK - Free Report) : The company’s revenues are expected to decline 11.1% from the year-ago figure, while the bottom line is expected to match the prior-year figure. VRSK has beaten the Zacks Consensus Estimate in three of the previous four quarters and matched on one instance, with an average surprise of 9.9%. The company has an Earnings ESP of +5.23% and a Zacks Rank of 3. VRSK is expected to release its third-quarter earnings on Nov 1.
Aptiv (APTV - Free Report) : The company’s revenues are expected to increase 7.1% from the year-ago figure and the bottom line is expected to indicate an 8.6% decline from the prior-year figure. APTV has beaten the Zacks Consensus Estimate in all of the previous four quarters, with an average surprise of 13.4%. The company has an Earnings ESP of +5.69% and a Zacks Rank of 3. APTV is expected to release its third-quarter earnings on Nov 2.
Trane Technologies (TT - Free Report) : The company’s revenues and bottom line are expected to indicate growth of 9.3% and 17.2%, respectively, from the year-ago figure. TT has beaten the Zacks Consensus Estimate in all the previous four quarters, with an average surprise of 7.3%. The company has an Earnings ESP of +0.85% and a Zacks Rank of 2. TT is expected to release its third-quarter earnings on Nov 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.