You can see it in the pre-market charts: once the Employment Situation numbers for July hit the tape, three of the four major indices fell like a stone. Only the blue-chip Dow, still -0.74% points at this hour, has remained on the table. The S&P 500 is -1.77%, the Nasdaq -2.44% and the Russell 2000 -4.26% at this hour.Fingers Pointing Fed Chair Powell’s DirectionJust as analysts warned months ahead of time that the Fed needed to start raising interest rates as inflation was clearly hitting the economy, thos ...

Investing in dividend stocks for passive income has long been a desired strategy for income-focused investors. These companies often have decades of experience returning cash to shareholders by distributing a portion of their profits. They can hail from a wide range of sectors including financials, consumer discretionary, and information technology. When analyzing the stocks, investors should prioritize companies with stable cash flows, earnings and a relatively low payout ratio.Additionally, more advanced ...

A woman working with human resources software on a computer. grinvalds Here on Seeking Alpha, I have highlighted time and again that dividend growers and initiators tend to perform well over the long haul. The most recent data from Hartford Funds backs up this claim. A $100 investment in the S&P 500's (SP500) dividend growers and initiators in 1973 would have been valued at more than $14,000 to conclude 2023. That's triple the $4,400 the same investment amount invested in an equal-weighted S&P 500 index w ...

Automatic Data Processing, Inc. (ADP) has reported impressive fourth-quarter fiscal 2024 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.ADP’s earnings per share of $2.1 beat the consensus estimate by 1% and increased 10.6% from the year-ago quarter. Total revenues of $4.8 billion surpassed the consensus estimate by a slight margin and grew 6.5% from the year-ago quarter.The ADP stock has gained 10.6% over the year-to-date period, outperforming the 9.2% rally of the indust ...

Financial Data and Key Metrics - Revenue growth for Q4 2024 was 6%, with adjusted EBIT margin expansion of 80 basis points and adjusted EPS growth of 11% [7] - Full-year fiscal 2024 revenue growth was 7%, with adjusted EBIT margin expansion of 70 basis points and adjusted EPS growth of 12% [7] - Employer services bookings growth for fiscal 2024 was 7%, at the high end of the 4% to 7% guidance range [9] - Employer services retention for the year was 92%, better than expected, with record retention in the mid-market business for the second consecutive year [9] - Employer services pays per control increased 2% both for the quarter and the full year [10] - PEO revenue growth for Q4 was 6%, exceeding expectations despite slowing client hiring activity [10] - Full-year PEO revenue grew 4%, with average worksite employees increasing 2% [23] Business Line Performance - Small business segment saw over 50,000 new clients added in Q4, reflecting strong demand for the RUN solution [8] - Mid-market and enterprise segments also showed strong performance, with client interest in next-gen HCM solutions exceeding expectations [8] - PEO segment saw average worksite employees increase by 3% year-over-year in Q4 to 742,000 [23] - Comprehensive services in HR outsourcing generated over $1 billion in revenue for the year, a significant milestone [19] Market Performance - International business showed strong growth throughout the year, with Q4 being the strongest quarter [49] - The company expanded its global footprint by acquiring a payroll business in Sweden and extending its Celergo payroll offering to Iceland [15] - The iHCM platform scaled in several European countries, now serving over 5,000 clients and paying more than 1 million client employees [15] Strategic Priorities and Industry Competition - The company's first strategic priority is to lead with best-in-class HCM technology, including the launch of ADP Assist, a generative AI-powered solution [11] - ADP Assist was deployed across multiple platforms, including RUN, Workforce Now, and next-gen HCM, with enhanced capabilities such as natural language search and HR action initiation [12] - The company's second priority is to provide unmatched expertise and outsourcing, with investments in generative AI tools for service associates and implementation teams [13] - The third priority is to leverage global scale, with continued expansion in the APAC region and partnerships with leading technology providers [15] Management Commentary on Operating Environment and Future Outlook - The company expects some moderation in economic activity in fiscal 2025 but remains well-positioned to deliver solid financial results [24] - For the ES segment, revenue growth is expected to be 5% to 6%, with new business bookings growth of 4% to 7% [25] - PEO revenue is expected to grow 4% to 6%, with average worksite employee growth of 1% to 3% [29] - The company anticipates adjusted EBIT margin expansion of 60 to 80 basis points for fiscal 2025 [30] Other Important Information - ADP was recognized as the world's most admired company by Fortune magazine for the 18th consecutive year and celebrated its 30th straight year on the Fortune 500 [20] - The company celebrated its 75th anniversary in 2024, reflecting its enduring impact on the world of work [21] Q&A Session Summary Question: Bookings Performance and Demand Environment - Bookings performance was broad-based, with strength across small business, mid-market, enterprise, and international segments [33] - The HCM demand environment remains strong, with pipelines looking strong year-on-year [34] Question: Pays Per Control Performance - Pays per control growth is expected to moderate to 1% to 2% in fiscal 2025, with ES expected to be stronger than PEO [36] Question: ES Strength and Macro Factors - The strength in ES is driven by both internal execution and a strong macro environment, with the company's value proposition being an imperative for businesses [40][41] Question: Competition and Pricing - The company has not observed meaningful price compression from competitors, with the competitive landscape remaining status quo [45] Question: Composition of Bookings and International Business - The down market saw incredible strength, with 50,000 new small business clients added in Q4 [47] - International business had a fantastic year, with each quarter showing stronger performance than the last [49] Question: Pricing and Retention Balance - The company is confident in taking 100 basis points of pricing in fiscal 2025, with a focus on long-term client value [52] Question: Generative AI and Monetization - Generative AI is expected to drive both internal efficiency and revenue growth, with monetization opportunities being explored [54][55] Question: PEO Guidance and Revenue Growth - PEO revenue growth is expected to be driven by zero margin pass-throughs, with some pressure from pays per control and workers' compensation costs [58] Question: Business Durability in a Slowing Macro Environment - The company's HCM offerings are durable across different economic environments, with the ability to adjust quickly to changing demand [60][61] Question: Source of Small Business Bookings - Small business bookings were broad-based, with a mix of new business formations and competitive takeaways [66] Question: Next-Gen HCM Client Wins - Next-gen HCM client wins included both ADP upgrades and new logos, with significant wins against enterprise competitors [69] Question: Client Retention and Satisfaction - Client satisfaction scores reached record highs, driven by best-in-class products and service, contributing to strong retention [71] Question: International Growth Expectations - International growth is a priority, with the company leveraging its global scale and infrastructure to support clients in 141 countries [87][88] Question: Portfolio Duration and Investment Strategy - The company's laddered investment strategy provides opportunities for client funds interest growth, with $6 billion maturing in 2025 at higher reinvestment rates [91] Question: Workforce Optimization - The company is always evaluating workforce optimization, with a focus on having the right people in the right places [96] Question: Enterprise Sales Cycle - The enterprise sales cycle has returned to pre-pandemic norms, with more decision-makers involved but no reduction in modules purchased [99][100] Question: Small Business Health - The company monitors small business health through metrics like new business formations and out-of-business rates, with no significant concerns at this time [102]

American companies added 122,000 jobs this month, while wage growth continued to slow.That’s according to the latest monthly employment report from ADP, released Wednesday (July 31), showing the number of new private sector jobs is down from 155,000 in June. Wage increases slowed to 4.8%, the slowest pace in three years, while increases for people changing jobs slowed from 7.7% to 7.2% in July.“With wage growth abating, the labor market is playing along with the Federal Reserve’s effort to slow inflation,” ...

Automatic Data Processing (ADP) came out with quarterly earnings of $2.09 per share, beating the Zacks Consensus Estimate of $2.07 per share. This compares to earnings of $1.89 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.97%. A quarter ago, it was expected that this payroll and human resources company would post earnings of $2.76 per share when it actually produced earnings of $2.88, delivering a surprise of 4.35%.Over t ...

ADP Earnings Call & Webcast Q4 Fiscal 2024 July 31, 2024 Forward Looking Statements This document and other written or oral statements made from time to time by ADP may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by the use of words like "outlook," "expects," "assumes," "projects," "anticipates," "estimates," "we believe," "could," "is designed to" and other words of ...

ROSELAND, N.J., July 31, 2024 /PRNewswire/ -- ADP (Nasdaq: ADP), a leading global technology company providing human capital management (HCM) solutions, today announced its fourth quarter and fiscal 2024 financial results along with its fiscal 2025 outlook through an earnings release available on the company's website at investors.adp.com/events-and-presentations. This earnings release will also be furnished to the Securities and Exchange Commission (SEC) on a Current Report on Form 8-K and available at sec ...

ADP Reports Fourth Quarter and Fiscal 2024 Results; Provides Fiscal 2025 Outlook • Revenues increased 7% to $19.2 billion for the year; 6% organic constant currency • Employer Services new business bookings increased 7% for the year to $2.0 billion • Net earnings increased 10% to $3.8 billion for the year, and adjusted net earnings increased 11% to $3.8 billion • Adjusted EBIT increased 9% to $4.9 billion for the year, and adjusted EBIT margin increased 70 basis points to 25.5% • Diluted earnings per share ...