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Compared to Estimates, ADP (ADP) Q3 Earnings: A Look at Key Metrics
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Automatic Data Processing (ADP - Free Report) reported $4.93 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 9.2%. EPS of $2.52 for the same period compares to $2.21 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $4.89 billion, representing a surprise of +0.86%. The company delivered an EPS surprise of +4.13%, with the consensus EPS estimate being $2.42.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Interest on funds held for clients: $249.40 million compared to the $242.47 million average estimate based on five analysts. The reported number represents a change of +111.4% year over year.
Revenues- PEO revenues: $1.59 billion versus $1.62 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +5.1% change.
Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $3.09 billion compared to the $3.03 billion average estimate based on four analysts. The reported number represents a change of +7.2% year over year.
Segment revenues- Employer Services: $3.34 billion compared to the $3.25 billion average estimate based on four analysts. The reported number represents a change of +11.2% year over year.
Segment revenues- PEO Services: $1.59 billion versus the three-analyst average estimate of $1.62 billion.
Shares of ADP have returned -1.2% over the past month versus the Zacks S&P 500 composite's +2.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Compared to Estimates, ADP (ADP) Q3 Earnings: A Look at Key Metrics
Automatic Data Processing (ADP - Free Report) reported $4.93 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 9.2%. EPS of $2.52 for the same period compares to $2.21 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $4.89 billion, representing a surprise of +0.86%. The company delivered an EPS surprise of +4.13%, with the consensus EPS estimate being $2.42.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenues- Interest on funds held for clients: $249.40 million compared to the $242.47 million average estimate based on five analysts. The reported number represents a change of +111.4% year over year.
- Revenues- PEO revenues: $1.59 billion versus $1.62 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +5.1% change.
- Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $3.09 billion compared to the $3.03 billion average estimate based on four analysts. The reported number represents a change of +7.2% year over year.
- Segment revenues- Employer Services: $3.34 billion compared to the $3.25 billion average estimate based on four analysts. The reported number represents a change of +11.2% year over year.
- Segment revenues- PEO Services: $1.59 billion versus the three-analyst average estimate of $1.62 billion.
View all Key Company Metrics for ADP here>>>Shares of ADP have returned -1.2% over the past month versus the Zacks S&P 500 composite's +2.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.