Financial Performance - Revenues increased 7% year-over-year to $4.8 billion, with 7% organic constant currency growth[1] - Net earnings rose 11% to $956 million, with adjusted net earnings also increasing 11% to $956 million[2] - Adjusted EBIT increased 13% to $1.2 billion, resulting in an adjusted EBIT margin of 25.5%, up 130 basis points[1] - Diluted EPS increased 13% to $2.34, while adjusted diluted EPS rose 12% to $2.33[2] - Total revenues for the three months ended September 30, 2024, increased by 7% to $4,832.7 million compared to $4,512.4 million in the same period of 2023[23] - Total pretax earnings rose by 13% to $1,236.2 million, with Employer Services segment earnings increasing by 15% to $1,164.3 million[23] - Net earnings for the quarter were $956.3 million, reflecting an 11% increase from $859.4 million in the prior year[35] - Basic earnings per share increased by 12% to $2.34, while diluted earnings per share rose by 13% to $2.34[23] Revenue Guidance - Full year consolidated revenue growth guidance updated to 6% to 7%, with adjusted diluted EPS growth guidance revised to 7% to 9%[1] - Employer Services revenue growth projected at 6% to 7% for fiscal 2025, with new business bookings growth of 4% to 7%[10] - PEO Services revenue growth expected at 5% to 6%, with average worksite employees paid increasing by 2% to 3%[10] Investments and Acquisitions - The acquisition of WorkForce Software for approximately $1.2 billion in cash is expected to enhance ADP's workforce management solutions[7] - The company reported a net cash used in investing activities of $1,644.4 million for Q3 2024, compared to $216.1 million in Q3 2023, indicating a substantial increase in investment outflows[21] Client Funds and Interest Income - Interest on funds held for clients increased 26% to $253 million, with average client funds balances rising 5% to $32.8 billion[6] - Average investment balances held for clients increased by 5% to $32.8 billion, with corporate extended balances rising significantly by 56% to $8.6 billion[25] - Interest income from funds held for clients increased by 26% to $253.3 million, contributing to the overall financial performance[27] - Interest on funds held for clients forecasted between $1.115 billion and $1.135 billion, based on anticipated growth in client funds balances[11] Assets and Liabilities - Total current assets decreased to $39,911.2 million as of September 30, 2024, from $45,542.5 million as of June 30, 2024, representing a decline of approximately 12.4%[20] - Total liabilities decreased to $44,162.8 million as of September 30, 2024, from $49,815.1 million as of June 30, 2024, reflecting a reduction of approximately 11.3%[20] - Stockholders' equity increased to $5,348.6 million as of September 30, 2024, up from $4,547.6 million as of June 30, 2024, representing an increase of about 17.6%[20] Cash Flow - Net cash flows provided by operating activities were $824.4 million for Q3 2024, significantly higher than $326.5 million in Q3 2023[21] - The company reported a net change in cash and cash equivalents of $(7,294.5) million for Q3 2024, compared to $(1,809.6) million for Q3 2023, indicating a significant increase in cash outflows[21] - Cash and cash equivalents at the end of the period were $2,791.5 million, down from $6,961.9 million at the end of Q3 2023[21] Future Outlook - The effective tax rate (GAAP) is expected to remain at 23.0% for both Fiscal 2024 and 2025[40] - Transformation initiatives for FY24 included consulting costs, with no specific financial impact projected for FY25[40] - Workforce optimization in FY24 is expected to contribute $42.0 million, with a margin impact of 20 basis points[40] - Legal settlements in FY24 are projected to have a negative impact of $(4.0) million[40] - Future outlook for Fiscal 2025 includes an adjusted EBIT margin guidance of 30 to 50 basis points improvement[40] - The company emphasizes the importance of new solutions and technology adaptation in its forward-looking statements[42]

CHINA - 2023/02/15: In this photo illustration, the American provider of human resources management ... [+] software and services company, Automatic Data Processing (ADP) logo is seen displayed on a smartphone with an economic stock exchange index graph in the background. (Photo Illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesPayroll and HR solutions player ADP is expected to publish its Q1 FY’25 results on October 30, reporting on a period tha ...

Core Viewpoint - Wall Street analysts forecast a quarterly earnings per share (EPS) of $2.20 for Automatic Data Processing (ADP), reflecting a year-over-year increase of 5.8% and anticipated revenues of $4.76 billion, which is a 5.5% increase compared to the previous year [1] Revenue Estimates - Analysts project 'Revenues- Interest on funds held for clients' to reach $248.57 million, indicating a year-over-year change of +23.2% [2] - The estimated 'Revenues- PEO revenues' is $1.55 billion, showing a year-over-year change of +5.5% [2] - The consensus estimate for 'Revenues- Revenues, other than interest on funds held for clients and PEO revenues' stands at $2.96 billion, reflecting a change of +4.1% from the prior-year quarter [2] Segment Revenue Estimates - 'Segment revenues- Employer Services' are expected to reach $3.22 billion, indicating a change of +5.7% from the prior-year quarter [3] - 'Segment revenues- PEO Services' is projected to be $1.54 billion, with a change of +4.7% from the year-ago quarter [3] - The forecast for 'Average paid PEO worksite employees during the period' is 737, compared to 717 in the previous year [3] Stock Performance - ADP shares have increased by +5.5% over the past month, outperforming the Zacks S&P 500 composite, which has moved +1.4% [3] - ADP holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near term [3]

Automatic Data Processing, Inc. (ADP) is scheduled to release its first-quarter fiscal 2025 results on Oct. 30, before market open.See Zacks Earnings Calendar to stay ahead of market-making news.ADP has an impressive earnings surprise history, surpassing the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 2.3%.Automatic Data Processing’s Q1 ExpectationsThe Zacks Consensus Estimate for the top line is pegged at $4.8 billion, implying a 5.5% increase on a year-over-year basi ...

Transaction will expand global offering and drive workforce management innovation to meet the future needs of businessesROSELAND, N.J., Oct. 15, 2024 /PRNewswire/ -- ADP® (Nasdaq: ADP), a leading global technology company providing human capital management (HCM) solutions, today announced that it has acquired WorkForce Software, a premier workforce management solutions provider that specializes in supporting large, global enterprises. This acquisition will expand ADP's global offering of workforce managemen ...

Automatic Data Processing Inc (ADP, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With a current share price of $284.73, ADP has experienced a slight daily decrease of 0.15%, yet it boasts a significant three-month gain of 21.36%. A detailed examination, anchored by the GF Score, positions Automatic Data Processing Inc as a prime candidate for substantial future growth. What Is the GF Scor ...

Pre-market futures end a tentative trading week higher, both before and after this morning’s Employment Situation report from the U.S. Bureau of Labor Statistics (BLS). Currently, we see gains of +200 points on the Dow at this hour, +40 points on the S&P 500 and the Nasdaq +204 points.Jobs Reports Better than Expected: +254K, Unemployment +4.1%Headline monthly job gains from the BLS for September this morning exploded higher: +254K versus estimates of between +132-150K, much higher than the trailing three-m ...

Friday, October 4th, 2024Pre-market futures end a tentative trading week higher, both before and after this morning’s Employment Situation report from the U.S. Bureau of Labor Statistics (BLS). Currently, we see gains of +200 points on the Dow at this hour, +40 points on the S&P 500 and the Nasdaq +204 points. Jobs Reports Better than Expected: +254K, Unemployment +4.1%Headline monthly job gains from the BLS for September this morning exploded higher: +254K versus estimates of between +132-150K, much higher ...

Core Insights - Automatic Data Processing Inc (ADP) has demonstrated strong financial performance, with a current share price of $283.24 and a three-month gain of 20.38% despite a minor daily loss of 0.49% [1] - The company has a GF Score of 95/100, indicating significant growth potential and a strong position for future outperformance [2][3] Financial Overview - ADP has a market capitalization of $115.51 billion and annual sales of $19.20 billion, with an operating margin of 25.85% [3] - The breakdown of financials shows a pretax income of $13.0 billion (67.6% of total), operating income of $5.0 billion (25.9%), and gross profit of $8.7 billion (45.4%) [4] - The company’s interest coverage ratio stands at 13.74, well above the benchmark of 5, and its debt-to-revenue ratio is 0.19, indicating strong financial health [5] Profitability and Growth Metrics - ADP's operating margin has increased to 25.94% in 2024, reflecting improved efficiency in converting revenue into profit [5] - The company has achieved a 3-Year Revenue Growth Rate of 9.9%, outperforming over half of its industry peers [5] Business Model - ADP serves over 1 million clients, providing a range of services from payroll to human capital management, primarily in the United States [3] - The company has a rapidly growing professional employer organization segment that offers HR outsourcing solutions to small and midsize businesses [3]

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