ADP (ADP. $218.18) beats fiscal Q3 earnings expectations
Automatic Data Processing, Inc. posted third-quarter fiscal 2022 results that were better than expected by the Zacks Consensus Estimate.
The payroll and HR services company’s adjusted earnings climbed +16.9% from the year-ago quarter to $2.21 a share, surpassing the Zacks Consensus Estimate by 6.8%.
Total revenues of $4.51 billion beat the consensus mark by 1.2% and grew +10% year over year on a reported basis and +11% on an organic constant-currency basis.
Employer Services revenues increased 8% on a reported basis and 9% on an organic constant-currency basis. PEO Services revenues grew 14% year over year to $1.51 billion. Average worksite employees paid by PEO Services were 688,000, up 16% year over year.
Adjusted EBIT rose +12% year over year to $1.2 billion. Adjusted EBIT margin expanded 50 basis points to 26.8%, on the back of higher revenues, which were partially offset by increased expenses related to selling, implementation and service, and higher PEO pass-through expenses.
For fiscal 2022, ADP now expects revenues to experience 9-10% growth compared with prior forecast of 8-9%. Adjusted EPS forecast is 15-17% growth compared with the expected prior growth rate of 12-14%.
The company now expects Employer Services revenues growth at a rate of about 7% compared with the expected prior growth rate of about 6%. It projects PEO Services revenues growth of 14-15% compared with prior expectation of 13% to 15%.
ADP in upward trend: price expected to rise as it breaks its lower Bollinger Band on June 09, 2025
ADP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 30 cases where ADP's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ADP's RSI Indicator exited the oversold zone, of 20 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 48 cases where ADP's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on June 30, 2025. You may want to consider a long position or call options on ADP as a result. In of 97 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ADP advanced for three days, in of 339 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 308 cases where ADP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for ADP turned negative on June 05, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
ADP moved below its 50-day moving average on June 25, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ADP crossed bearishly below the 50-day moving average on June 25, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ADP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
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