Back to top

Image: Bigstock

ADP Beats Q3 Earnings Estimates, Lags Revenues, Ups '19 View

Read MoreHide Full Article

Automatic Data Processing, Inc. (ADP - Free Report) reported third-quarter fiscal 2019 earnings per share of $1.77 (on an adjusted basis) beating the Zacks Consensus Estimate of $1.69. Earnings also increased on a year-over-year basis.

How Was the Estimate Revision Trend?

Investors should note that the Zacks Consensus Estimate for ADP’s third-quarter fiscal 2019 earnings remained stable over the last 60 days.

The company has an impressive earnings history having outperformed the Zacks Consensus Estimate in each of the last four quarters with an average beat of 7.6%.

Revenues Lower Than Expected

ADP recorded revenues of $3,847 million which underperformed the Zacks Consensus Estimate of $3,903 million. However, revenues compared favorably with the year-ago figure of $3,696 million.

Key Stats to Note: ADP raised its fiscal 2019 guidance for adjusted earnings and adjusted EBIT margin growth while reaffirming the same for revenue growth. For fiscal 2019, revenues are expected to register 6-7% growth. Adjusted earnings per share are expected to register 19-20% growth compared with 17-19% growth guided earlier. The company expects adjusted EBIT margin growth of 150 bps compared with 125 to 150 bps guided earlier.

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 Automatic Data Processing earnings report later!

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.

See 7 breakthrough stocks now>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Automatic Data Processing, Inc. (ADP) - free report >>

Published in