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ADP has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all the trailing four quarters. The average surprise is 2.6%.
Q4 Expectations
The Zacks Consensus Estimate for the top line is currently pegged at $4.4 billion, up 6.6% from the year-ago actual figure. The increase can be due to the expected improvement in segmental performance.
Automatic Data Processing, Inc. Price and EPS Surprise
The consensus estimate for earnings per share is pegged at $1.83, up 22% year over year. The company’s innovative and mission-critical HCM solutions can be the reason for such growth.
Segmental Expectations
Our estimate for fourth-quarter 2023 revenues from Employer Service is currently pegged at $2.73 billion, up 5.4% from the second-quarter 2022 reported figure. The uptick can be correlated to the expected continuation of healthy demand environment.
Our estimate for PEO services revenues is currently pegged at $1.46 billion, 3.3% higher than the year-ago reported figure. The growth can be due to the expected increase in bookings. Our estimate for Interest on Funds held for clients is currently pegged at $194 million, indicating a 53% increase from the year-ago reported figure.
Our estimate for Average Paid PEO Worksite Employees during the fourth quarter is pegged at 717.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for ADP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
ADP has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks to Consider
Here are a few stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings this season.
The Zacks Consensus Estimate for the bottom line is pegged at $1.01 per share, up more than 100% from the year-ago figure. The consensus mark for revenues is pegged at $4.7 billion, up 15.8% from the figure reported a year ago. APTV had an average negative surprise of 8.1% in the previous four quarters.
APTV has an ESP of +12.88.
Avis Budget (CAR - Free Report) currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for earnings is pegged at $9.78 per share, down 38.6% from the year-ago figure. The consensus mark for revenues is pegged at $3.19 billion, down 1.6% from the prior-year figure. CAR had an average surprise of 65.2% in the previous four quarters.
CAR has an Earnings ESP of +1.46.
S&P Global (SPGI - Free Report) currently has a Zacks Rank of 2. The Zacks Consensus Estimate for the bottom line is pegged at $3.09 per share, up 10% from the year-ago reported figure. The consensus mark for revenues is pegged at $3.05 billion, up 1.9% from the prior-year reported figure. SPGI had an average surprise of 3.1% in the previous four quarters.
SPGI has an ESP of +2.05.
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What's in the Offing for Automatic Data's (ADP) Q4 Earnings?
The Automatic Data Group of Companies, Inc. (ADP - Free Report) is scheduled to release its fourth-quarter 2023 results on Jul 26, before the market open.
ADP has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all the trailing four quarters. The average surprise is 2.6%.
Q4 Expectations
The Zacks Consensus Estimate for the top line is currently pegged at $4.4 billion, up 6.6% from the year-ago actual figure. The increase can be due to the expected improvement in segmental performance.
Automatic Data Processing, Inc. Price and EPS Surprise
Automatic Data Processing, Inc. price-eps-surprise | Automatic Data Processing, Inc. Quote
The consensus estimate for earnings per share is pegged at $1.83, up 22% year over year. The company’s innovative and mission-critical HCM solutions can be the reason for such growth.
Segmental Expectations
Our estimate for fourth-quarter 2023 revenues from Employer Service is currently pegged at $2.73 billion, up 5.4% from the second-quarter 2022 reported figure. The uptick can be correlated to the expected continuation of healthy demand environment.
Our estimate for PEO services revenues is currently pegged at $1.46 billion, 3.3% higher than the year-ago reported figure. The growth can be due to the expected increase in bookings. Our estimate for Interest on Funds held for clients is currently pegged at $194 million, indicating a 53% increase from the year-ago reported figure.
Our estimate for Average Paid PEO Worksite Employees during the fourth quarter is pegged at 717.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for ADP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
ADP has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks to Consider
Here are a few stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings this season.
Aptiv (APTV - Free Report) currently has a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the bottom line is pegged at $1.01 per share, up more than 100% from the year-ago figure. The consensus mark for revenues is pegged at $4.7 billion, up 15.8% from the figure reported a year ago. APTV had an average negative surprise of 8.1% in the previous four quarters.
APTV has an ESP of +12.88.
Avis Budget (CAR - Free Report) currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for earnings is pegged at $9.78 per share, down 38.6% from the year-ago figure. The consensus mark for revenues is pegged at $3.19 billion, down 1.6% from the prior-year figure. CAR had an average surprise of 65.2% in the previous four quarters.
CAR has an Earnings ESP of +1.46.
S&P Global (SPGI - Free Report) currently has a Zacks Rank of 2. The Zacks Consensus Estimate for the bottom line is pegged at $3.09 per share, up 10% from the year-ago reported figure. The consensus mark for revenues is pegged at $3.05 billion, up 1.9% from the prior-year reported figure. SPGI had an average surprise of 3.1% in the previous four quarters.
SPGI has an ESP of +2.05.