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Automatic Data Processing (ADP) Q3 Earnings Meet Estimates

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Automatic Data Processing, Inc.(ADP - Free Report) reported third-quarter fiscal 2020 earnings per share of $1.92 (on an adjusted basis) which matched the Zacks Consensus Estimate.

How Was the Estimate Revision Trend?

Investors should note that the earnings estimate revisions for ADP depicted a pessimistic picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for third-quarter fiscal 2020 earnings move down 1% over the last 60 days.

However, 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 2.8%.

Revenues Better Than Expected

ADP recorded revenues of $4,047.8 million which outperformed the Zacks Consensus Estimate of $4,038.4 million. Moreover, revenues compared favorably with the year-ago figure of $3,847.4 million.

Key Stats to Note: ADP expects revenues to register about 3% growth compared with the prior growth rate of 6%. Adjusted earnings per share are anticipated to register 4-7% growth compared with the prior growth rate of 12-14%. Adjusted effective tax rate is anticipated to be 22.9% compared with the prior rate of 23.2%

Zacks Rank: Currently, ADP has a Zacks Rank #4 (Sell) 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.

Automatic Data Processing, Inc. Price and EPS Surprise

 

Automatic Data Processing, Inc. Price and EPS Surprise

Automatic Data Processing, Inc. price-eps-surprise | Automatic Data Processing, Inc. Quote

Check back later for our full write up on this ADP earnings report later!

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