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 -0.43% change in stock price 10 days leading up to the earnings, and a +1.24% change 10 days following the report. On the earnings day itself, the stock moves by +0.08%. 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
5.05B
8.15%
4.46%
Gross Margin
50.42%
0.80%
0.20%
Operating Margin
25.75%
1.30%
-2.17%
Net Margin
19.08%
1.38%
-3.59%
EPS
2.36
10.80%
0.85%
No Data Available
ADP Earnings Analysis
Automatic Data Processing Inc Corporation (ADP.O) Earnings Conference Call
Positive
Strong Revenue Performance: ADP achieved 8% revenue growth in Q2, reflecting strong performance across Employer Services and PEO segments.
EBIT Margin Improvement: Adjusted EBIT margin expanded by 60 basis points, indicating improved operational efficiency and profitability.
Earnings Performance Improvement: Adjusted EPS grew by 10%, showcasing strong earnings performance and value creation for shareholders.
PEO Revenue Growth Drivers: PEO revenue growth of 8% was driven by robust new business bookings and increased client engagement.
Client Satisfaction Milestone: ADP's client satisfaction levels reached an all-time high in Q2, underscoring the company's commitment to customer service and retention.
Negative
Client Retention Challenges: Employer services retention declined slightly compared to the prior year, indicating potential challenges in client retention despite exceeding expectations.
Profitability Pressure Indicated: PEO margin decreased 140 basis points in the quarter, impacted by higher zero-margin benefits pass-through revenue growth and increased costs, suggesting pressure on profitability.
PEO Revenue Deceleration Ahead: PEO revenue growth is expected to decelerate in the back half of the year due to timing issues and a pull forward of state unemployment insurance revenue, indicating potential revenue challenges ahead.
Q3 Margin and EPS Outlook: Adjusted EBIT margin expansion and adjusted EPS growth are expected to be lower in Q3 compared to Q4, reflecting lower revenue growth and integration expenses associated with the Workforce Software acquisition.
Interest Revenue Challenges: Client funds interest revenue is facing headwinds from lower short-term interest rates, which could negatively impact overall revenue growth in the upcoming quarters.
ADP FAQs
How does ADP typically perform around its earnings report dates?
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ADP Earning Call Sentiment
Earnings call transcript: ADP Q2 2025 results show 8% revenue growth
ADP.O
0.33%Positive
The earnings call presents mixed signals: strong revenue and EPS growth, dividend increase, and positive market demand are offset by concerns about supply chain, economic factors, and integration expenses. The Q&A section highlights uncertainties in partnerships and demand scaling. While financials are robust, the lack of clarity on partnerships and potential risks tempers optimism, suggesting a neutral stock price movement in the short term.
