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ADP (ADP) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
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For the quarter ended December 2024, Automatic Data Processing (ADP - Free Report) reported revenue of $5.05 billion, up 8.2% over the same period last year. EPS came in at $2.35, compared to $2.13 in the year-ago quarter.
The reported revenue represents a surprise of +1.64% over the Zacks Consensus Estimate of $4.97 billion. With the consensus EPS estimate being $2.27, the EPS surprise was +3.52%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
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: 746 versus the two-analyst average estimate of 743.
Revenues- Interest on funds held for clients: $272.80 million versus the five-analyst average estimate of $267.52 million. The reported number represents a year-over-year change of +21.1%.
Revenues- PEO revenues: $1.66 billion versus the four-analyst average estimate of $1.63 billion. The reported number represents a year-over-year change of +7.6%.
Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $3.11 billion versus the four-analyst average estimate of $3.07 billion. The reported number represents a year-over-year change of +7.5%.
Segment revenues- Employer Services: $3.39 billion versus $3.34 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8.4% change.
Segment revenues- PEO Services: $1.66 billion versus $1.62 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +7.6% change.
Segment revenues- Other: -$3.40 million versus the two-analyst average estimate of -$2.54 million. The reported number represents a year-over-year change of +3%.
Shares of ADP have returned +1.9% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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ADP (ADP) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
For the quarter ended December 2024, Automatic Data Processing (ADP - Free Report) reported revenue of $5.05 billion, up 8.2% over the same period last year. EPS came in at $2.35, compared to $2.13 in the year-ago quarter.
The reported revenue represents a surprise of +1.64% over the Zacks Consensus Estimate of $4.97 billion. With the consensus EPS estimate being $2.27, the EPS surprise was +3.52%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
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: 746 versus the two-analyst average estimate of 743.
- Revenues- Interest on funds held for clients: $272.80 million versus the five-analyst average estimate of $267.52 million. The reported number represents a year-over-year change of +21.1%.
- Revenues- PEO revenues: $1.66 billion versus the four-analyst average estimate of $1.63 billion. The reported number represents a year-over-year change of +7.6%.
- Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $3.11 billion versus the four-analyst average estimate of $3.07 billion. The reported number represents a year-over-year change of +7.5%.
- Segment revenues- Employer Services: $3.39 billion versus $3.34 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8.4% change.
- Segment revenues- PEO Services: $1.66 billion versus $1.62 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +7.6% change.
- Segment revenues- Other: -$3.40 million versus the two-analyst average estimate of -$2.54 million. The reported number represents a year-over-year change of +3%.
View all Key Company Metrics for ADP here>>>Shares of ADP have returned +1.9% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.