ADP Earnings Prediction
The chart below shows how ADP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ADP sees a -0.62% change in stock price 10 days leading up to the earnings, and a +1.26% change 10 days following the report. On the earnings day itself, the stock moves by -0.13%. This data can give you a slight idea of what to expect for the next quarter's release.
ADP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
4.83B
7.10%
1.35%
Gross Margin
50.32%
1.66%
0.62%
Operating Margin
26.32%
6.30%
10.08%
Net Margin
19.79%
3.88%
13.80%
EPS
2.34
12.50%
15.84%
No Data Available
ADP Earnings Analysis
Automatic Data Processing Corporation (ADP.O) Earnings Conference Call
Positive
Strong Revenue Growth: 7% revenue growth reported for the first quarter of fiscal 2025, indicating strong demand and performance.
EBIT Margin Expansion: 130 basis points of adjusted EBIT margin expansion, showcasing improved operational efficiency.
Adjusted EPS Growth: 12% adjusted EPS growth, reflecting strong profitability and effective cost management strategies.
Strong New Business Bookings: Record volume in Employer Services new business bookings for the first quarter, demonstrating robust customer acquisition efforts.
Client Satisfaction Milestone: Overall client satisfaction score reached a new all-time high, driven by improvements in mid-market, enterprise, and HR outsourcing businesses.
Negative
Strong Revenue and Employee Growth: P E O revenue growth of 7% and average worksite employee growth of 3% for the first quarter exceeded our expectations as strong P E O new business bookings growth more than offset the impact of modest further deceleration in P E O pays per control growth.
Margin Decrease Analysis: P E O margin decreased 80 basis points in Q1, which is less than we anticipated due primarily to stronger revenue growth.
Margin Decline Factors: The margin decline versus last year stemmed mainly from higher workers compensation program costs and higher zero margin benefits pass-through revenue growth.
Interest Revenue Forecast Reduction: We are reducing our client funds interest revenue forecast by $10 million.
Effective Tax Rate Projection: We now expect a fully year effective tax rate of around 23%.
ADP FAQs
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ADP Earning Call Sentiment
Automatic Data Processing, Inc. (ADP) Q1 2025 Earnings Call Transcript
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00:00
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ADP.O
1.03%Positive
The earnings call presents mixed signals: strong revenue and EPS growth, but concerns over PEO margin decline and increased interest expenses. The acquisition of WorkForce Software is seen as strategic but may pressure margins. The Q&A section reveals some management uncertainty about the acquisition's impact. Overall, the financial performance is solid, but uncertainties and increased expenses balance out the positives, resulting in a neutral prediction for stock movement.