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Unlocking Q4 Potential of ADP (ADP): Exploring Wall Street Estimates for Key Metrics

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The upcoming report from Automatic Data Processing (ADP - Free Report) is expected to reveal quarterly earnings of $2.22 per share, indicating an increase of 6.2% compared to the year-ago period. Analysts forecast revenues of $5.05 billion, representing an increase of 5.9% year over year.

The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

Bearing this in mind, let's now explore the average estimates of specific ADP metrics that are commonly monitored and projected by Wall Street analysts.

Analysts predict that the 'Revenues- Interest on funds held for clients' will reach $286.31 million. The estimate points to a change of +3.4% from the year-ago quarter.

The consensus estimate for 'Revenues- PEO revenues' stands at $1.63 billion. The estimate suggests a change of +5.2% year over year.

Based on the collective assessment of analysts, 'Revenues- Revenues, other than interest on funds held for clients and PEO revenues' should arrive at $3.13 billion. The estimate indicates a year-over-year change of +6.3%.

The average prediction of analysts places 'Segment revenues- Employer Services' at $3.43 billion. The estimate points to a change of +6.4% from the year-ago quarter.

The combined assessment of analysts suggests that 'Segment revenues- PEO Services' will likely reach $1.63 billion. The estimate points to a change of +5% from the year-ago quarter.

It is projected by analysts that the 'Average paid PEO worksite employees during the period' will reach 757 . The estimate compares to the year-ago value of 742 .

View all Key Company Metrics for ADP here>>>

Shares of ADP have demonstrated returns of +1.1% over the past month compared to the Zacks S&P 500 composite's +4.6% change. With a Zacks Rank #3 (Hold), ADP is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .


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