Automatic Data Processing, Inc. (ADP - Free Report) reported fourth-quarter fiscal 2018 earnings per share of 92 cents (on an adjusted basis), beating the Zacks Consensus Estimate of 90 cents. Earnings increased 39% on a year-over-year basis.
How Was the Estimate Revision Trend?
Investors should note that the earnings estimate revisions for ADP depicted an optimistic picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for fourth-quarter fiscal 2018 earnings increase 1.1% over the last 60 days.
Moreover, the company has an impressive earnings history having outperformed the Zacks Consensus Estimate in three of the last four quarters with an average beat of 5.2%.
Revenues Higher Than Expected
ADP recorded total revenues of $3,318.6 million which outperformed the Zacks Consensus Estimate of $3,287.5 million. Moreover, revenues compared favorably with the year-ago figure of $3,064.8 million.
Key Stats to Note: ADP provided an outlook for fiscal 2019. For full-year fiscal 2019, the company expects revenue growth of 5% to 7% and adjusted EBIT margin to increase 100 to 125 bps. Adjusted earnings per share is expected to register growth of 13% to 15%. Adjusted effective tax rate is anticipated around 25.1%.
Zacks Rank: Currently, ADP has a Zacks Rank #2 (Buy) but that could change following the company’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Check back later for our full write up on this ADP earnings report later!
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