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Compared to Estimates, ADP (ADP) Q4 Earnings: A Look at Key Metrics
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Automatic Data Processing (ADP - Free Report) reported $4.48 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 8.5%. EPS of $1.89 for the same period compares to $1.50 a year ago.
The reported revenue represents a surprise of +1.76% over the Zacks Consensus Estimate of $4.4 billion. With the consensus EPS estimate being $1.83, the EPS surprise was +3.28%.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average paid PEO worksite employees during the period: 722 compared to the 714.78 average estimate based on two analysts.
Revenues- Interest on funds held for clients: $235.70 million versus the five-analyst average estimate of $215.01 million. The reported number represents a year-over-year change of +85.9%.
Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $2.78 billion versus the four-analyst average estimate of $2.72 billion. The reported number represents a year-over-year change of +7.4%.
Revenues- PEO revenues: $1.46 billion versus $1.45 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +3.5% change.
Segment revenues- Employer Services: $3.02 billion versus the four-analyst average estimate of $2.94 billion. The reported number represents a year-over-year change of +11%.
Segment revenues- PEO Services: $1.46 billion versus $1.45 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.6% change.
Segment revenues- Other: -$3 million versus -$3.74 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -30.2% change.
Shares of ADP have returned +11.5% over the past month versus the Zacks S&P 500 composite's +5.1% 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) Q4 Earnings: A Look at Key Metrics
Automatic Data Processing (ADP - Free Report) reported $4.48 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 8.5%. EPS of $1.89 for the same period compares to $1.50 a year ago.
The reported revenue represents a surprise of +1.76% over the Zacks Consensus Estimate of $4.4 billion. With the consensus EPS estimate being $1.83, the EPS surprise was +3.28%.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Average paid PEO worksite employees during the period: 722 compared to the 714.78 average estimate based on two analysts.
- Revenues- Interest on funds held for clients: $235.70 million versus the five-analyst average estimate of $215.01 million. The reported number represents a year-over-year change of +85.9%.
- Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $2.78 billion versus the four-analyst average estimate of $2.72 billion. The reported number represents a year-over-year change of +7.4%.
- Revenues- PEO revenues: $1.46 billion versus $1.45 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +3.5% change.
- Segment revenues- Employer Services: $3.02 billion versus the four-analyst average estimate of $2.94 billion. The reported number represents a year-over-year change of +11%.
- Segment revenues- PEO Services: $1.46 billion versus $1.45 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.6% change.
- Segment revenues- Other: -$3 million versus -$3.74 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -30.2% change.
View all Key Company Metrics for ADP here>>>Shares of ADP have returned +11.5% over the past month versus the Zacks S&P 500 composite's +5.1% 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.