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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 upward trend: price may jump up because it broke its lower Bollinger Band on March 11, 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 28 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 .

Price Prediction Chart

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 17 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 March 25, 2025. You may want to consider a long position or call options on ADP as a result. In of 105 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for ADP just turned positive on March 26, 2025. Looking at past instances where ADP's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .

ADP moved above its 50-day moving average on March 31, 2025 date and that indicates a change from a downward trend to an upward trend.

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 .

The Aroon Indicator entered an Uptrend today. In of 301 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 Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

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 .

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 .

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 2%. For the same group, the average monthly price growth was -3%, and the average quarterly price growth was 9%. ADP experienced the highest price growth at 2%, while ADP experienced the biggest fall at 2%.

Volume

The average weekly volume growth across all stocks in the group was 46%. For the same stocks of the group, the average monthly volume growth was -23% and the average quarterly volume growth was 94%

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: 33
Price Growth Rating: 47
SMR Rating: 14
Profit Risk Rating: 7
Seasonality Score: -39 (-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