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ADP (ADP) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended September 2023, Automatic Data Processing (ADP - Free Report) reported revenue of $4.51 billion, up 7% over the same period last year. EPS came in at $2.08, compared to $1.86 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $4.52 billion, representing a surprise of -0.20%. The company delivered an EPS surprise of +2.46%, with the consensus EPS estimate being $2.03.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average paid PEO worksite employees during the period: 717 compared to the 730 average estimate based on three analysts.
Revenues- Interest on funds held for clients: $201.70 million compared to the $206.92 million average estimate based on five analysts. The reported number represents a change of +43.1% year over year.
Revenues- PEO revenues: $1.47 billion versus $1.48 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +2.8% change.
Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $2.84 billion versus $2.81 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.4% change.
Segment revenues- Employer Services: $3.05 billion versus the four-analyst average estimate of $3.03 billion. The reported number represents a year-over-year change of +9.2%.
Segment revenues- PEO Services: $1.47 billion compared to the $1.48 billion average estimate based on three analysts. The reported number represents a change of +2.8% year over year.
Segment revenues- Other: -$3.60 million compared to the -$3.16 million average estimate based on two analysts. The reported number represents a change of -10% year over year.
Segment earnings- Employer Services: $1.01 billion versus $973.70 million estimated by two analysts on average.
Segment earnings- Other: -$138.60 million versus -$138.41 million estimated by two analysts on average.
Segment earnings- PEO Services: $222.90 million versus $238.84 million estimated by two analysts on average.
Shares of ADP have returned +1.4% over the past month versus the Zacks S&P 500 composite's -1.6% 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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ADP (ADP) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended September 2023, Automatic Data Processing (ADP - Free Report) reported revenue of $4.51 billion, up 7% over the same period last year. EPS came in at $2.08, compared to $1.86 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $4.52 billion, representing a surprise of -0.20%. The company delivered an EPS surprise of +2.46%, with the consensus EPS estimate being $2.03.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Average paid PEO worksite employees during the period: 717 compared to the 730 average estimate based on three analysts.
- Revenues- Interest on funds held for clients: $201.70 million compared to the $206.92 million average estimate based on five analysts. The reported number represents a change of +43.1% year over year.
- Revenues- PEO revenues: $1.47 billion versus $1.48 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +2.8% change.
- Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $2.84 billion versus $2.81 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.4% change.
- Segment revenues- Employer Services: $3.05 billion versus the four-analyst average estimate of $3.03 billion. The reported number represents a year-over-year change of +9.2%.
- Segment revenues- PEO Services: $1.47 billion compared to the $1.48 billion average estimate based on three analysts. The reported number represents a change of +2.8% year over year.
- Segment revenues- Other: -$3.60 million compared to the -$3.16 million average estimate based on two analysts. The reported number represents a change of -10% year over year.
- Segment earnings- Employer Services: $1.01 billion versus $973.70 million estimated by two analysts on average.
- Segment earnings- Other: -$138.60 million versus -$138.41 million estimated by two analysts on average.
- Segment earnings- PEO Services: $222.90 million versus $238.84 million estimated by two analysts on average.
View all Key Company Metrics for ADP here>>>Shares of ADP have returned +1.4% over the past month versus the Zacks S&P 500 composite's -1.6% 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.