ADP Q4 Earnings: Analysts Predict 6.2% EPS Growth and 5.9% Revenue Increase

ADP's Q4 earnings are expected to increase 6.2% YoY to $2.22 per share, with revenues up 5.9% YoY to $5.05 billion. Analysts predict key metrics such as 'Revenues- Interest on funds held for clients' to reach $286.31 million, 'Revenues- PEO revenues' to $1.63 billion, and 'Segment revenues- Employer Services' to $3.43 billion. Shares of ADP have returned 1.1% over the past month.

Automatic Data Processing (ADP) is set to release its quarterly earnings report, with analysts expecting a significant increase in earnings and revenues. The company is anticipated to report earnings per share (EPS) of $2.22, representing a 6.2% year-over-year (YoY) increase. Revenue is forecast to reach $5.05 billion, up 5.9% from the same period last year [1].

Analysts have provided detailed projections for various key metrics. The 'Revenues- Interest on funds held for clients' is expected to reach $286.31 million, a 3.4% increase from the year-ago quarter. 'Revenues- PEO revenues' is projected at $1.63 billion, up 5.2% YoY, while 'Segment revenues- Employer Services' is anticipated to be $3.43 billion, marking a 6.4% increase [1].

Over the past month, shares of ADP have demonstrated returns of +1.1%, compared to the Zacks S&P 500 composite's +4.6% change. ADP currently holds a Zacks Rank of #3 (Hold), indicating a neutral outlook on the stock's performance relative to the broader market [1].

Investors should keep in mind that the upcoming earnings report may not solely determine the stock's performance. The actual results compared to analysts' estimates, along with management's discussion on business conditions, will likely influence the stock's near-term movement. ADP's recent earnings surprise history shows the company has beaten consensus EPS estimates four times in the last four quarters, with a surprise of +3.38% in the last reported quarter [2].

While ADP's earnings growth is promising, investors should also consider other factors, such as the company's overall business conditions and future growth prospects, before making investment decisions.

References:
[1] https://finance.yahoo.com/news/unlocking-q4-potential-adp-adp-131504494.html
[2] https://finviz.com/news/112419/automatic-data-processing-adp-reports-next-week-wall-street-expects-earnings-growth