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Sergey Savastiouk's Avatar
published in Blogs
Jan 28, 2023

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%.

Related Ticker: ADP

ADP in -3.16% downward trend, declining for three consecutive days on April 21, 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 239 cases, the price declined further within the following month. The odds of a continued downward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 71 cases where ADP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .

The Momentum Indicator moved below the 0 level on April 04, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on ADP as a result. In of 102 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 April 21, 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 April 04, 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 March 17, 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 .

The Aroon Indicator for ADP entered a downward trend on April 09, 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 RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where ADP's RSI Indicator exited the oversold zone, of 17 resulted in an increase in price. Tickeron's analysis proposes that 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 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.

Market Cap

The average market capitalization across the group is 102.59B. The market cap for tickers in the group ranges from 102.59B to 102.59B. ADP holds the highest valuation in this group at 102.59B. The lowest valued company is ADP at 102.59B.

High and low price notable news

The average weekly price growth across all stocks in the group was -6%. For the same group, the average monthly price growth was -4%, and the average quarterly price growth was -1%. ADP experienced the highest price growth at -6%, while ADP experienced the biggest fall at -6%.

Volume

The average weekly volume growth across all stocks in the group was 28%. For the same stocks of the group, the average monthly volume growth was -41% and the average quarterly volume growth was 96%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 12
P/E Growth Rating: 38
Price Growth Rating: 48
SMR Rating: 14
Profit Risk Rating: 6
Seasonality Score: -46 (-100 ... +100)
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General Information

a provider of business outsourcing solutions

Industry

Profile
Fundamentals
Details
Industry
Data Processing Services
Address
One ADP Boulevard
Phone
+1 973 974-5000
Employees
60000
Web
https://www.adp.com