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 -0.44% downward trend, falling for three consecutive days on June 20, 2025
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where ADP declined for three days, in of 241 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 09, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on ADP as a result. In of 98 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 18, 2025 date and that indicates a change from an upward trend to a downward trend.
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ADP advanced for three days, in of 338 cases, the price rose further within the following month. The odds of a continued upward trend are .
ADP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
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 .
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