Compared to Estimates, ADP (ADP) Q3 Earnings: A Look at Key Metrics

Core Insights - Automatic Data Processing (ADP) reported $5.25 billion in revenue for the quarter ended March 2024, reflecting a year-over-year increase of 6.6% and an EPS of $2.88 compared to $2.52 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $5.22 billion by 0.58%, while the EPS surpassed the consensus estimate of $2.76 by 4.35% [1] Financial Performance Metrics - Average paid PEO worksite employees during the period: 732, matching the average estimate [2] - Revenues from interest on funds held for clients: $320.80 million, exceeding the estimate of $285.58 million by 28.6% year-over-year [2] - PEO revenues: $1.66 billion, slightly below the estimate of $1.67 billion, with a year-over-year change of 4.6% [2] - Other revenues (excluding interest and PEO revenues): $3.27 billion, slightly below the estimate of $3.28 billion, with a year-over-year increase of 5.9% [2] - Employer Services segment revenues: $3.59 billion, exceeding the estimate of $3.57 billion, with a year-over-year increase of 7.5% [2] - PEO Services segment revenues: $1.67 billion, slightly above the estimate of $1.66 billion, with a year-over-year increase of 4.6% [2] - Other segment revenues: -$2.50 million, better than the estimate of -$2.73 million, with a year-over-year change of -24.2% [2] Stock Performance - ADP shares have returned -2.3% over the past month, compared to the Zacks S&P 500 composite's -4.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]