Market Capitalization Changes - Tesla's market capitalization increased by 6.75% to $1,025.4 billion [3] - TSMC's market capitalization rose by 5.93% to $969.7 billion [3] - Tencent's market capitalization grew by 4.66% to $609.8 billion [3] - Netflix's market capitalization decreased by 2.65% to $472.3 billion [3] - Oracle's market capitalization increased by 4.58% to $440.8 billion [3] Notable Performers - Shopify saw a significant increase of 13.7% in market capitalization, reaching $136.2 billion [4] - AppLovin experienced a remarkable rise of 89% to $1.177 billion [4] - AMD's market capitalization increased by 5.13% to $175.3 billion [5] - Uber's market capitalization rose by 6.39% to $184.2 billion [5] Decliners - Pinduoduo's market capitalization fell by 6.14% to $165.2 billion [4] - Xiaomi's market capitalization decreased by 2.11% to $163.4 billion [4] - Spotify's market capitalization declined by 4.23% to $127.3 billion [4] Other Companies of Interest - Adobe's market capitalization increased by 3.3% to $168.7 billion [4] - Qualcomm's market capitalization rose by 4.78% to $167.0 billion [4] - Intel's market capitalization increased by 3.55% to $96.7 billion [5] - Airbnb's market capitalization grew by 5.64% to $828 million [5]

Core Viewpoint - ADP has announced a public offering of $1.0 billion in senior notes with a 4.750% interest rate, maturing in 2032, aimed at refinancing existing debt and supporting general corporate purposes [1][2]. Group 1: Offering Details - The public offering consists of $1.0 billion aggregate principal amount of senior notes due in 2032 [1]. - The expected net proceeds from the offering will be received around May 8, 2025 [2]. - The proceeds will primarily be used to refinance existing debt, with any remaining funds allocated for general corporate purposes [2]. Group 2: Regulatory and Legal Information - ADP has filed a registration statement with the SEC, which includes a prospectus and preliminary prospectus supplement for the offering [3]. - The press release clarifies that it does not constitute an offer to sell or solicit offers to buy the debt securities [4]. Group 3: Company Overview - ADP is a leading global technology company specializing in cloud-based human capital management solutions, focusing on HR, talent, time management, benefits, and payroll [5].

Core Insights - Small businesses are navigating a complex landscape influenced by new technologies, changing employee expectations, and compliance challenges, as highlighted during National Small Business Week [1][3] - ADP's Grit & Wisdom Contest gathered insights from nearly 18,000 small businesses, revealing key strategies for success [1][4] Group 1: Key Advice from Small Business Owners - Success requires patience and persistence, with an emphasis on adaptability and continuous innovation [4] - The importance of a strong team and positive workplace culture is crucial for growth, encouraging leaders to motivate employees and foster curiosity [4] - Small business owners express love and enjoyment as key emotions that sustain them, enhancing customer relationships and team morale [4] Group 2: Expert Insights from ADP - A comprehensive benefits strategy is essential for attracting talent, with a focus on high-impact benefits and employee education to enhance retention [9] - Learning and development are vital for growth, emphasizing practical experience and on-the-job training to cultivate employee skills [9] - Staying updated on compliance changes is critical, as small businesses must adapt to evolving laws regarding wages, pay transparency, and leave policies [9] - Technology is increasingly important for streamlining operations while maintaining human connections, with a focus on intuitive solutions that support business growth [9]

Group 1 - Domo is a member of the Computer and Technology sector, which includes 609 individual stocks and holds a Zacks Sector Rank of 9 [2] - Domo currently has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for Domo's full-year earnings has increased by 5.4% in the past quarter, reflecting improved analyst sentiment [3] Group 2 - Domo has returned 6.4% year-to-date, outperforming the average loss of 8.9% in the Computer and Technology sector [4] - Automatic Data Processing (ADP) is another stock in the sector that has outperformed, with a year-to-date return of 2% [4] - Domo belongs to the Internet - Software industry, which includes 168 companies and currently ranks 143 in the Zacks Industry Rank, with an average loss of 3.1% this year [6] Group 3 - Investors should continue to monitor Domo and Automatic Data Processing for potential sustained solid performance in the Computer and Technology sector [7]

Core Viewpoint - Automatic Data Processing, Inc. (NASDAQ: ADP) recently reported its Q3 earnings, prompting a detailed analysis of the company's financial performance and investment potential [1]. Financial Performance - The company has shown a consistent focus on long-term growth, appealing to investors with a 5-10 year investment horizon [1]. - The investment strategy emphasizes a balanced portfolio that includes growth, value, and dividend-paying stocks, with a particular focus on value investments [1].

Revenue and Earnings Growth - Revenue growth of 7% to $15,434.1 million for the nine months ended March 31, 2025, with 7% organic constant currency growth[84] - Adjusted diluted earnings per share (EPS) grew by 9% to $7.75[84] - Net earnings for the three months ended March 31, 2025, were $1,249.5 million, up 5% from $1,184.9 million in the same period last year[106] - Diluted EPS for the nine months ended March 31, 2025, increased to $7.75, representing a 10% growth from $7.07 in the prior year[106] - Adjusted EBIT for the nine months ended March 31, 2025, reached $4,134.2 million, reflecting a 9% increase compared to $3,779.1 million in the previous year[99] Client and Employee Metrics - Pays per control metric grew 1% for the nine months ended March 31, 2025, compared to the same period in 2024[82] - PEO average worksite employees increased by 3% for the nine months ended March 31, 2025, compared to the same period in 2024[82] - The average client funds balance increased by 6.6% to $37.5 billion for the nine months ended March 31, 2025[88] - Funds held for clients rose to $44,495.8 million for the three months ended March 31, 2025, up from $41,701.7 million in 2024, indicating an increase of 6.8%[147] Operating Expenses and Cash Flow - Operating expenses increased by 6% to $11,571.2 million for the nine months ended March 31, 2025[89] - Cash provided by operating activities for the nine months ended March 31, 2025, was $3,500.5 million, up $643.5 million from $2,857.0 million in 2024[132] - Cash returned to shareholders totaled $2.8 billion, including $1.8 billion in dividends and $1.0 billion in share repurchases[84] Acquisitions and Investments - The company closed the acquisition of PEI in January and WorkForce Software in October, enhancing its global payroll capabilities[81] - Net cash flows used in investing activities included a net cash disbursement of $1,158.3 million for the acquisition of Workforce Software[133] - Capital expenditures for the nine months ended March 31, 2025, were $139.9 million, down from $151.6 million for the same period in 2024, with expectations for fiscal 2025 capital expenditures between $180.0 million and $200.0 million[140] Financial Position and Securities - Cash and cash equivalents as of March 31, 2025, were $2.7 billion, primarily invested in time deposits and money market funds[129] - The total available-for-sale securities at fair value increased from $31.2 billion as of June 30, 2024, to $33.9 billion as of March 31, 2025[147] - The company reported net unrealized pre-tax losses on available-for-sale securities of $(688.0) million as of March 31, 2025, compared to $(1,515.8) million as of June 30, 2024[147] Debt and Credit Facilities - The company has $10.3 billion available under committed credit facilities, with no borrowings through March 31, 2025[138] - The company has $4.0 billion of senior unsecured notes maturing in 2025, 2028, 2030, and 2034, and may revisit the long-term debt market for refinancing and acquisitions[136] Market and Risk Management - The company is exposed to market risk from foreign currency exchange rates, which could impact consolidated results, and manages this risk through operating activities and derivative financial instruments[149] - The company limits credit risk by investing primarily in AAA-rated and AA-rated securities, ensuring a focus on investment-grade securities[148] Accounting and Compliance - The preparation of financial statements requires management to make estimates and assumptions that could differ from actual results, as noted in the critical accounting policies[150] - Recent accounting pronouncements are discussed in Note 2 of the Consolidated Financial Statements, indicating ongoing compliance with updated accounting standards[151]

Automatic Data Processing, Inc. (ADP) has reported impressive third-quarter fiscal 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.ADP’s earnings per share of $3.06 beat the consensus estimate by 3.4% and increased 6.3% from the year-ago quarter. Total revenues of $5.6 billion surpassed the consensus estimate by 1.1% and grew 5.7% on a year-over-year basis.The ADP stock has gained 22.1% in the past year rallying closely with its industry and outperforming the 12.5% rise of ...

Core Insights - Automatic Data Processing (ADP) reported strong fiscal 2025 Q3 earnings, exceeding analysts' expectations with adjusted EPS of $3.06 and revenue of $5.55 billion [2][3] - The company demonstrated solid financial efficacy despite competitive challenges and economic conditions [2] Financial Performance - Adjusted EPS for Q3 2025 was $3.06, surpassing the estimate of $2.97, and increased by 6.3% from Q3 2024's $2.88 [3] - Total revenue reached $5.55 billion, exceeding the estimate of $5.49 billion, and reflecting a 5.7% increase from $5.25 billion in Q3 2024 [3] - Adjusted EBIT margin remained stable at 29.3%, with adjusted EBIT rising 6% to $1.6 billion [3][7] - Net income for the quarter was $1.25 billion, a 5% increase from $1.18 billion in the previous year [3] Segment Performance - The Employer Services segment revenue increased by 5% to $3.77 billion [6] - The PEO Services segment reported a 7% revenue increase to $1.79 billion, contributing significantly to total revenue [6] Strategic Focus - ADP aims to reinforce its technological dominance and expand international outreach while maintaining strong compliance and risk management capabilities [5] - The company continues to enhance its service offerings through technology-driven tools and AI platforms, such as ADP Assist [7] Future Outlook - Management raised full-year fiscal 2025 guidance, projecting adjusted diluted EPS growth of 8% to 9% and total revenue growth of 6% to 7% [9] - Adjusted EBIT margin is expected to expand by 40 to 50 basis points from the 2024 margin of 25.5% [9] - Average client fund balances are forecasted to grow by 5% to 6% from the 2024 figure of $35.4 billion [9]

Group 1: Earnings Performance - Automatic Data Processing (ADP) reported quarterly earnings of $3.06 per share, exceeding the Zacks Consensus Estimate of $2.96 per share, and up from $2.88 per share a year ago, representing an earnings surprise of 3.38% [1] - The company posted revenues of $5.55 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.09%, compared to year-ago revenues of $5.25 billion [2] - Over the last four quarters, ADP has consistently surpassed consensus EPS estimates and revenue estimates [2] Group 2: Stock Performance and Outlook - ADP shares have increased approximately 1% since the beginning of the year, while the S&P 500 has declined by 5.5% [3] - The future performance of ADP's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.29 on revenues of $5.05 billion, and for the current fiscal year, it is $9.94 on revenues of $20.43 billion [7] Group 3: Industry Context - The Internet - Software industry, to which ADP belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact ADP's stock performance [5][6]

Financial Data and Key Metrics Changes - The company reported a solid third quarter with 6% revenue growth, 10 basis points of adjusted EBIT margin expansion, and 6% adjusted EPS growth [7][17] - Employer Services (ES) segment revenue increased by 5% on a reported and organic constant currency basis [17] - PEO revenue growth was 7%, exceeding expectations, supported by higher wages and strong retention [20] Business Line Data and Key Metrics Changes - New business bookings for Employer Services showed solid growth, particularly in U.S. offerings, while international bookings experienced softness due to macroeconomic uncertainty [8][9] - PEO revenue excluding zero margin pass-through growth was 8%, with average worksite employee growth at 2% [20] - The integration of Workforce Software is progressing well, enhancing the overall offerings [51] Market Data and Key Metrics Changes - The company experienced a decline in international bookings, attributed to macroeconomic uncertainty, but maintains a strong pipeline for future growth [9][27] - U.S. clients continued to hire, with pays per control growth remaining at 1% [10] - Client funds interest revenue increased due to stronger average client funds balance growth, leading to an updated growth expectation of 5% to 6% for the year [18] Company Strategy and Development Direction - The company is focused on leading with best-in-class HCM technology and providing unmatched expertise in outsourcing [11] - The acquisition of PEI in Mexico is aimed at strengthening global payroll capabilities and enhancing local expertise [12][13] - The partnership with Fiserv is expected to accelerate sales and expand the embedded payroll solution [14] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is macroeconomic uncertainty, the underlying economic factors remain strong, with low unemployment and continued hiring [38][40] - The company expects pays per control growth to continue at below normal levels next year due to economic conditions [22] - Management remains optimistic about the strong pipelines and execution against them, particularly in the enterprise space [100] Other Important Information - A CFO transition is underway, with Peter Hadley set to succeed Don McGuire effective July 1 [5][6] - The company received several awards for its HCM technology, indicating strong market recognition [15] Q&A Session Summary Question: Can you provide more color on the softer international bookings? - Management indicated that the softness is due to macroeconomic uncertainty, but strong pipelines remain for a solid finish to the year [26][28] Question: What is the growth opportunity for the embedded offering with Fiserv? - The company is excited about the partnership and sees significant opportunities for growth across various distribution channels [30][32] Question: How is the company addressing client hesitancy in hiring? - Management noted stability in their client base, with continued hiring despite some apprehension regarding large deals [38][40] Question: What are the expectations for PEO business in the current environment? - The company reported solid growth in PEO bookings and strong retention, indicating a positive outlook [46][48] Question: How does the company view the competitive landscape, particularly in the down market? - Management acknowledged the competitive nature but emphasized their strong offerings and client satisfaction as key differentiators [102][105] Question: What percentage of bookings come from international markets? - Approximately 88% of the company's revenue is derived from the domestic U.S. market, with the remainder from international [110] Question: How will margins be affected going forward? - The company expects some recovery in margins but noted that certain costs will persist, impacting overall margin profiles [111] Question: How is client behavior evolving in the PEO segment regarding benefits enrollments? - Management reported strong retention and stability in benefits offerings, indicating a positive response from clients [85][87]