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ADP has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 2.8%.
Automatic Data Processing, Inc. Price and EPS Surprise
The Zacks Consensus Estimate for the top line is pegged at $5.2 billion, suggesting a 6% year-over-year rise. The increase in revenues is likely to have benefitted from a rise in new bookings, improvements across the small business portfolio of the company, and healthy growth in the mid-market and the international business.
Our estimate for third-quarter fiscal 2024 revenues from Employer Service is pegged at $3.6 billion, indicating 6.9% growth from the year-ago quarter’s actual. The uptick in business bookings is likely to have driven this segment’s growth.
We anticipate PEO services revenues to be $1.6 billion, suggesting a 3.6% rise from the year-ago quarter’s actual. Strong new business bookings and growth in average work site employees are likely to have driven PEO services’ revenue growth.
Our estimate for Interest on Funds held for clients is pegged at $255.8 million, indicating a 2.6% increase from the year-ago reported figure. Our estimate for Average Paid PEO Worksite Employees for the quarter is pegged at 728. Changes in Pay per control are expected to be 1.8% for the to-be-reported quarter.
The consensus estimate for earnings per share is pegged at $2.8, indicating an increase of 9.5% from the year-ago quarter’s actual. Bottom-line growth is likely to have benefitted from a strong revenue performance.
What Our Model Says
Our proven model conclusively 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, which is the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
ADP has an Earnings ESP of +1.72% and a Zacks Rank of 3.
Stocks to Consider
Here are a few other stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.
Confluent (CFLT - Free Report) : The Zacks Consensus Estimate for the company’s first-quarter revenues is pegged at $211.5 million, indicating year-over-year growth of 21.4%. For earnings, the consensus mark is pegged at 2 cents per share, suggesting growth from that reported in the year-ago quarter. The company beat the Zacks Consensus Estimate in the past four quarters, with an average surprise of 128.9%.
Envestnet (ENV - Free Report) : The Zacks Consensus Estimate for the company’s first-quarter revenues is pegged at $324.9 million, indicating year-over-year growth of 8.8%. For earnings, the consensus mark is pegged at 54 cents per share, 17.4% higher than the year-ago quarter. The company beat the Zacks Consensus Estimate in three of the past four quarters and met on one instance, the average surprise being 7.7%.
ENV currently has an Earnings ESP of +1.23% and a Zacks Rank #3.
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Automatic Data (ADP) to Report Q3 Earnings: What's in Cards?
Automatic Data Processing, Inc. (ADP - Free Report) is scheduled to release its third-quarter fiscal 2024 results on May 1, before market open.
ADP has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 2.8%.
Automatic Data Processing, Inc. Price and EPS Surprise
Automatic Data Processing, Inc. price-eps-surprise | Automatic Data Processing, Inc. Quote
Q3 Expectations
The Zacks Consensus Estimate for the top line is pegged at $5.2 billion, suggesting a 6% year-over-year rise. The increase in revenues is likely to have benefitted from a rise in new bookings, improvements across the small business portfolio of the company, and healthy growth in the mid-market and the international business.
Our estimate for third-quarter fiscal 2024 revenues from Employer Service is pegged at $3.6 billion, indicating 6.9% growth from the year-ago quarter’s actual. The uptick in business bookings is likely to have driven this segment’s growth.
We anticipate PEO services revenues to be $1.6 billion, suggesting a 3.6% rise from the year-ago quarter’s actual. Strong new business bookings and growth in average work site employees are likely to have driven PEO services’ revenue growth.
Our estimate for Interest on Funds held for clients is pegged at $255.8 million, indicating a 2.6% increase from the year-ago reported figure. Our estimate for Average Paid PEO Worksite Employees for the quarter is pegged at 728. Changes in Pay per control are expected to be 1.8% for the to-be-reported quarter.
The consensus estimate for earnings per share is pegged at $2.8, indicating an increase of 9.5% from the year-ago quarter’s actual. Bottom-line growth is likely to have benefitted from a strong revenue performance.
What Our Model Says
Our proven model conclusively 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, which is the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
ADP has an Earnings ESP of +1.72% and a Zacks Rank of 3.
Stocks to Consider
Here are a few other stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.
Confluent (CFLT - Free Report) : The Zacks Consensus Estimate for the company’s first-quarter revenues is pegged at $211.5 million, indicating year-over-year growth of 21.4%. For earnings, the consensus mark is pegged at 2 cents per share, suggesting growth from that reported in the year-ago quarter. The company beat the Zacks Consensus Estimate in the past four quarters, with an average surprise of 128.9%.
CFLT currently has an Earnings ESP of +150.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Envestnet (ENV - Free Report) : The Zacks Consensus Estimate for the company’s first-quarter revenues is pegged at $324.9 million, indicating year-over-year growth of 8.8%. For earnings, the consensus mark is pegged at 54 cents per share, 17.4% higher than the year-ago quarter. The company beat the Zacks Consensus Estimate in three of the past four quarters and met on one instance, the average surprise being 7.7%.
ENV currently has an Earnings ESP of +1.23% and a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.