Automatic Data (ADP) to Report Q3 Earnings: What's in Cards?

Core Viewpoint - Automatic Data Processing, Inc. (ADP) is expected to report strong third-quarter fiscal 2024 results, with positive revenue and earnings growth anticipated based on historical performance and current estimates [1][4]. Group 1: Revenue Expectations - The Zacks Consensus Estimate for ADP's revenue is $5.2 billion, reflecting a 6% year-over-year increase [2]. - Revenue from Employer Services is estimated at $3.6 billion, indicating a 6.9% growth compared to the previous year [2]. - PEO services revenues are projected to be $1.6 billion, suggesting a 3.6% rise from the year-ago quarter [2]. Group 2: Earnings Expectations - The consensus estimate for earnings per share is $2.8, representing a 9.5% increase from the prior year [3]. - The growth in bottom-line performance is expected to be driven by strong revenue results [3]. Group 3: Earnings Prediction Model - ADP has an Earnings ESP of +1.72%, indicating a favorable outlook for an earnings beat [4]. - The company holds a Zacks Rank of 3, which suggests a stable position in the market [4]. Group 4: Comparisons with Other Stocks - Confluent (CFLT) is projected to have first-quarter revenues of $211.5 million, showing a year-over-year growth of 21.4% [5]. - Envestnet (ENV) is expected to report first-quarter revenues of $324.9 million, indicating an 8.8% year-over-year increase [6].