Automatic Data Processing (ADP) Q2 Earnings and Revenues Beat Estimates

Core Viewpoint - Automatic Data Processing (ADP) reported quarterly earnings of $2.35 per share, exceeding the Zacks Consensus Estimate of $2.27 per share, and showing an increase from $2.13 per share a year ago, indicating a positive earnings surprise of 3.52% [1][2] Financial Performance - ADP's revenues for the quarter ended December 2024 were $5.05 billion, surpassing the Zacks Consensus Estimate by 1.64%, and up from $4.67 billion year-over-year [2] - The company has consistently outperformed consensus EPS estimates over the last four quarters [2] Stock Performance and Outlook - ADP shares have increased approximately 1.9% year-to-date, while the S&P 500 has gained 3.2% [3] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates at $3.05 for the next quarter and $9.94 for the current fiscal year [4][7] Industry Context - The Outsourcing industry, to which ADP belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and earnings estimate revisions, which can be tracked by investors [5]