Labor Market Overview - The labor market continued to cool in August, with private sector job creation slowing for the fifth consecutive month, increasing by 99,000 jobs compared to 111,000 in July [1] - Wage growth remained flat, with year-over-year pay gains for job-stayers at 4.8% and for job-changers at 7.3% [2] Industry Sector Performance - Among the 10 industry sectors tracked, seven experienced job gains, while professional/business services, manufacturing, and information sectors saw declines of 16,000, 8,000, and 4,000 jobs respectively [2] Job Openings and Economic Activity - The number of job openings declined to 7.67 million in July, the lowest since early 2021, indicating a slowdown in demand for workers [2] - The Federal Reserve reported that the number of districts with flat or declining economic activity rose to nine in August, up from five in July, with firms becoming more selective in hiring [3]

ROSELAND, N.J., Sept. 5, 2024 /PRNewswire/ -- ADP (Nasdaq: ADP), a leading global technology company providing human capital management (HCM) solutions, today announced the pricing of a public offering of $1.0 billion aggregate principal amount of its 4.450% senior notes due 2034.ADP expects to receive the net offering proceeds upon closing on or about September 9, 2024. The intended use of proceeds from the offering is for general corporate purposes.ADP has filed a registration statement (including a prosp ...

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Tuesday, September 3rd, 2024It was a tough day for the market indexes. With jobs numbers looming later this week, market participants took a look at stock levels and decided they were too high. The Dow tumbled -626 points, -1.51%, while the Nasdaq shed -577 points, -3.26%. The S&P 500 and small-cap Russell 2000 were down -2.12% and -3.09%, respectively.This was the worst single trading day for tech stocks two years — the worst for the chips segment since 2020. Magnificent 7 stock leader NVIDIA (NVDA) fell - ...

Core Viewpoint - ADP, a leading global technology company in human capital management, will present at Citi's Global TMT Conference on September 5, 2024, at 10:50 a.m. ET [1] Company Overview - ADP specializes in providing human capital management solutions, including HR, Talent, Time Management, Benefits, and Payroll [1] - The company focuses on designing better ways to work through innovative products and exceptional services that empower individuals to reach their full potential [1] Event Details - The live webcast and archived replay of the conference presentation will be accessible on ADP's investor relations website [1]

We start this holiday-shortened trading week on the quiet side, but ultimately is should speak pretty loudly by this time Friday. This is the latest Jobs Week, and one that comes only a week before the next Federal Open Market Committee (FOMC) meeting, where interest rates are expected to come down a week from tomorrow.The question remains: how far will rates come down? We’ve been at 5.25-5.50% since late July of last year, and at last we see inflation metrics curbing suitably for either a 25 basis point (b ...

Core Viewpoint - Automatic Data Processing (ADP) reported strong fourth-quarter fiscal 2024 results, with both earnings and revenues exceeding expectations, but has lowered its guidance for fiscal 2025 growth [2][6]. Financial Performance - ADP's earnings per share for Q4 fiscal 2024 were $2.1, beating the consensus estimate by 1% and increasing 10.6% year-over-year [2]. - Total revenues reached $4.8 billion, surpassing estimates and growing 6.5% from the previous year [2]. - Employer Services generated revenues of $3.2 billion, growing 7% year-over-year [3]. - PEO Services revenues rose to $1.6 billion, exceeding expectations and increasing 6% from the year-ago quarter [3]. - Interest on client funds increased 17% to $227 million, although it fell short of estimates [3]. Margins - Adjusted EBIT rose 9% year-over-year to $4.9 billion, with an adjusted EBIT margin of 25.5%, up 70 basis points [4]. - The margin for Employer Services increased by 220 basis points, while PEO Services saw a decline of 240 basis points [4]. Balance Sheet and Cash Flow - At the end of Q4 fiscal 2024, ADP had cash and cash equivalents of $2.9 billion, down from $3.3 billion in the previous quarter [5]. - Long-term debt remained stable at $3 billion [5]. - The company generated $1.3 billion in cash from operating activities during the quarter [5]. FY25 Guidance - ADP has revised its revenue growth guidance for fiscal 2025 to 5-6%, down from 6-7% [6]. - Adjusted EPS growth guidance has been lowered to 8-10% from 10-12% [6]. - The adjusted effective tax rate is estimated at 23%, and the adjusted EBIT margin guidance has been updated to 60-80 basis points [6]. Market Sentiment - Recent estimates for ADP have trended downward, indicating a shift in market sentiment [7][8]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [8].

Core Insights - Automatic Data Processing, Inc. (ADP) has shown strong stock performance with a year-to-date gain of 19.3%, outperforming its industry and the S&P 500 composite [1] - ADP reported a robust fourth-quarter fiscal 2024, with earnings per share of $2.1, exceeding consensus estimates by 1% and reflecting a 10.6% increase year-over-year. Total revenues reached $4.8 billion, surpassing estimates and growing 6.5% from the previous year [3] Business Strategy - ADP employs a three-tier business strategy that supports its position as a human capital management (HCM) technology and service provider, focusing on a comprehensive suite of cloud-based HCM and human resource outsourcing (HRO) solutions [4] - The company is expanding its international HCM and HRO businesses through local software solutions and cloud-based multi-country solutions [4] Acquisitions - Recent acquisitions, including Celergo, WorkMarket, Global Cash Card, and Honu HR, Inc. DBA Sora, have strengthened ADP's customer base and facilitated international market expansion [5] - The acquisition of Sora aims to enhance HR process automation and improve employee experiences by integrating its platform with ADP's HCM solutions [5] Financial Performance - ADP paid out $1.9 billion in dividends in fiscal 2023, reflecting a commitment to returning value to shareholders, with steady income growth anticipated [6] - The company's current ratio at the end of fourth-quarter fiscal 2024 was 1.01, indicating efficiency in meeting short-term obligations [6] Expense Trends - ADP's total expenses reached $13.8 billion in fiscal 2023, marking an 8% year-over-year increase, following a 10% rise in fiscal 2022 [7][8] - The trend of increasing expenses has been consistent over the years, with notable increases in previous fiscal years, which may continue to impact the company's bottom line [8]

Investors looking for stocks in the Outsourcing sector might want to consider either Genpact (G) or Automatic Data Processing (ADP) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies wit ...

ROSELAND, N.J., Aug. 7, 2024 /PRNewswire/ -- The board of directors of Automatic Data Processing, Inc. (Nasdaq: ADP) has declared a regular quarterly dividend of $1.40 per share payable October 1, 2024 to shareholders of record on September 13, 2024.About ADP (NASDAQ – ADP)Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential.  HR, Talent, Time Management, Benefits and Payroll.  Informed by data and designed ...