ADP (ADP, $220.80) beats fiscal Q2 earnings expectations
Automatic Data Processing, Inc. posted second-quarter fiscal 2023 earnings that exceeded analysts’ expectations.
The human resources management company’s adjusted earnings per share for the quarter grew +19% from the year-ago quarter to $1.96, surpassing the Zacks Consensus Estimate by 0.5% (according to Zacks Equity Research).
Total revenues were up +9.1% year-over-year to $4.4 billion, topping the Zacks Consensus Estimate by +0.3%.
Employer Services’ revenues rose +8% year-over-year on a reported basis and +10% on an organic constant-currency basis. Pays per control climbed +5% from the year-ago fiscal quarter.
PEO Services’ revenues grew +11% year over year to $1.5 billion. Average worksite employees paid by PEO Services rose +8% year-over-year to 711,000.
Interest on funds held for clients grew +77% to $187 million. Average client funds balance increased 4% to $33.4 billion, while average interest yield on client funds widened 90 basis points to 2.2%.
For fiscal 2023, ADP reaffirmed expectations of revenues growth of 8-9%. Adjusted EPS is still expected to increase 15-17%. Adjusted effective tax rate is estimated to be around 23%.
The company projects Employer Services revenues growth of about 8-9%, higher than prior outlook of 7-8%. It continues to expect PEO Services revenues to grow at 8-9% rate vs. prior estimate of 10-12%.
ADP in -1.64% downward trend, sliding for three consecutive days on September 16, 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 247 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 September 02, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on ADP as a result. In of 93 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 September 02, 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 49 similar instances when the indicator turned negative. In of the 49 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 August 25, 2025 date and that indicates a change from an upward trend to a downward trend.
The Aroon Indicator for ADP entered a downward trend on September 08, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
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 .
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 Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (18.904) is normal, around the industry mean (13.138). P/E Ratio (28.933) is within average values for comparable stocks, (120.551). Projected Growth (PEG Ratio) (3.425) is also within normal values, averaging (2.056). Dividend Yield (0.021) settles around the average of (0.026) among similar stocks. P/S Ratio (5.741) is also within normal values, averaging (63.844).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. ADP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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General Information
a provider of business outsourcing solutions
Industry PackagedSoftware
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