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ADP (ADP) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
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For the quarter ended December 2023, Automatic Data Processing (ADP - Free Report) reported revenue of $4.67 billion, up 6.3% over the same period last year. EPS came in at $2.13, compared to $1.96 in the year-ago quarter.
The reported revenue represents a surprise of +0.16% over the Zacks Consensus Estimate of $4.66 billion. With the consensus EPS estimate being $2.10, the EPS surprise was +1.43%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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:
Average paid PEO worksite employees during the period: 725 compared to the 726 average estimate based on two analysts.
Revenues- Interest on funds held for clients: $225.30 million versus the five-analyst average estimate of $228.85 million. The reported number represents a year-over-year change of +20.4%.
Revenues- PEO revenues: $1.54 billion compared to the $1.54 billion average estimate based on four analysts. The reported number represents a change of +2.8% year over year.
Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $2.90 billion versus the four-analyst average estimate of $2.90 billion. The reported number represents a year-over-year change of +7.3%.
Segment revenues- Employer Services: $3.13 billion versus the four-analyst average estimate of $3.11 billion. The reported number represents a year-over-year change of +8.1%.
Segment revenues- PEO Services: $1.55 billion versus the three-analyst average estimate of $1.55 billion. The reported number represents a year-over-year change of +2.9%.
Segment revenues- Other: -$3.30 million compared to the -$3.10 million average estimate based on two analysts. The reported number represents a change of -21.4% year over year.
Shares of ADP have returned +2.2% over the past month versus the Zacks S&P 500 composite's +3.3% 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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ADP (ADP) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
For the quarter ended December 2023, Automatic Data Processing (ADP - Free Report) reported revenue of $4.67 billion, up 6.3% over the same period last year. EPS came in at $2.13, compared to $1.96 in the year-ago quarter.
The reported revenue represents a surprise of +0.16% over the Zacks Consensus Estimate of $4.66 billion. With the consensus EPS estimate being $2.10, the EPS surprise was +1.43%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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:
- Average paid PEO worksite employees during the period: 725 compared to the 726 average estimate based on two analysts.
- Revenues- Interest on funds held for clients: $225.30 million versus the five-analyst average estimate of $228.85 million. The reported number represents a year-over-year change of +20.4%.
- Revenues- PEO revenues: $1.54 billion compared to the $1.54 billion average estimate based on four analysts. The reported number represents a change of +2.8% year over year.
- Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $2.90 billion versus the four-analyst average estimate of $2.90 billion. The reported number represents a year-over-year change of +7.3%.
- Segment revenues- Employer Services: $3.13 billion versus the four-analyst average estimate of $3.11 billion. The reported number represents a year-over-year change of +8.1%.
- Segment revenues- PEO Services: $1.55 billion versus the three-analyst average estimate of $1.55 billion. The reported number represents a year-over-year change of +2.9%.
- Segment revenues- Other: -$3.30 million compared to the -$3.10 million average estimate based on two analysts. The reported number represents a change of -21.4% year over year.
View all Key Company Metrics for ADP here>>>Shares of ADP have returned +2.2% over the past month versus the Zacks S&P 500 composite's +3.3% 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.