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 ...

Automatic Data Processing reported strong fiscal 2025 Q3 earnings, exceeding expectations despite competitive challenges.Automatic Data Processing (ADP -0.39%), a global leader in human capital management (HCM) services, reported fiscal 2025 third-quarter earnings on Wednesday, April 30, that topped analysts' consensus expectations. Adjusted EPS of $3.06 beat the projected $2.97, while Q3 revenue reached $5.55 billion compared to the $5.49 billion estimate. ADP's performance this quarter marked solid financ ...

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]

Automatic Data Processing (ADP) Q3 2025 Earnings Call April 30, 2025 08:30 AM ET Speaker0 Good morning. My name is Michelle, and I'll be your conference operator. At this time, I would like to welcome everyone to ADP's Third Quarter twenty twenty five Earnings Call. I would like to inform you that this conference is being recorded. After the prepared remarks, we will conduct a question and answer session. Instructions will be given at that time. I will now turn the conference over to Matt Keating, Vice Pres ...

Automatic Data Processing (ADP) Q3 2025 Earnings Call April 30, 2025 08:30 AM ET Company Participants Matthew Keating - Vice President - IRMaria Black - President, CEO & DirectorDon Mcguire - CFOTien Tsin Huang - Managing DirectorBryan Bergin - Managing DirectorSamad Samana - Managing DirectorJames Faucette - Managing DirectorKevin McVeigh - Managing DirectorPeter Hadley - Corporate Vice President & TreasurerKartik Mehta - Executive MD & Director of Research Conference Call Participants Ramsey El Assal - An ...

ADP Earnings Call & Webcast Q3 Fiscal 2025 April 30, 2025 DISCLAIMERS 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 ot ...

ADP Reports Third Quarter Fiscal 2025 Results ROSELAND, N.J. – April 30, 2025 – ADP (Nasdaq: ADP), a leading global technology company providing human capital management (HCM) solutions, today announced its third quarter fiscal 2025 financial results and updated its fiscal 2025 outlook. Third Quarter Fiscal 2025 Consolidated Results Compared to last year's third quarter, revenues increased 6% to $5.6 billion and 6% on an organic constant currency basis. Net earnings increased 5% to $1.2 billion, and adjuste ...

Automatic Data Processing, Inc. (ADP) is scheduled to release its third-quarter fiscal 2025 results on April 30, before market open.ADP has a decent earnings surprise history, surpassing the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 3.7%.Automatic Data Processing, Inc. Price, Consensus and EPS Surprise Automatic Data Processing’s Q3 ExpectationsThe Zacks Consensus Estimate for the top line is $5.5 billion, suggesting a 4.6% year-over-year increase. The surge in reve ...