ADP (ADP, $241.12) beats fiscal Q4 expectations
Automatic Data Processing, Inc. reported fourth-quarter fiscal 2022 results that surpassed the Zacks Consensus Estimate.
The human resources company’s adjusted earnings in the quarter came in at $1.50 per share, exceeding the Zacks Consensus Estimate by 1.4%.
Revenues rose +10.5% from the year-ago quarter to $4.13 billion, beating the consensus estimate by 1.8%.
The company’s employer Services segment’s revenues climbed +8% from the year-ago quarter to $2.7 billion, with pays per control rising +7% year over year.
PEO Services revenues grew +16% year over year to $1.41 billion. Average worksite employees paid by PEO Services grew +14% to 704,000.
Interest on funds held for clients rose +23% to $127 million, and average client funds balances grew 12% to $32.8 billion. Average interest yield on client funds widened 10 basis points to 1.5%.
Looking ahead, ADP expects full-fiscal year 2023 revenues to grow in the 7-9% range (with employer Services revenues growth of 6-8% and PEO Services revenues expansion at 10-12% ranges).The company projects 13-16% growth in adjusted earnings per share. Adjusted effective tax rate is estimated to be around 23%.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
ADP in +1.36% Uptrend, rising for three consecutive days on August 24, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where ADP advanced for three days, in of 318 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on August 19, 2026. You may want to consider a long position or call options on ADP as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 262 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 10-day RSI Indicator for ADP moved out of overbought territory on August 07, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 similar instances where the indicator moved out of overbought territory. In of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Moving Average Convergence Divergence Histogram (MACD) for ADP turned negative on August 12, 2026. 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 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 .
ADP broke above its upper Bollinger Band on August 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
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 (18.657) is normal, around the industry mean (28.672). P/E Ratio (25.869) is within average values for comparable stocks, (79.190). Projected Growth (PEG Ratio) (2.625) is also within normal values, averaging (1.753). Dividend Yield (0.023) settles around the average of (0.046) among similar stocks. P/S Ratio (5.200) is also within normal values, averaging (70.832).
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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ADP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock slightly better than average.
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.
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General Information
a provider of business outsourcing solutions
Industry PackagedSoftware
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