Core Insights - ADP, a leading global technology company in human capital management solutions, announced upcoming presentations at three major conferences in May and June 2024 [1]. Conference Details - ADP will present at the Barclays Emerging Payments & Fintech Forum on May 15, 2024 [1]. - The company will also participate in the J.P. Morgan Global Technology, Media and Communications Conference on May 22, 2024 [1]. - Additionally, ADP is scheduled to present at the Baird Global Consumer, Technology & Services Conference on June 4, 2024 [1]. Investor Relations - Information regarding webcasts and archived replays of the events will be available on ADP's investor relations website [1].

Group 1: Dividend Stocks Overview - Investors are focusing on dividend stocks for passive income and stability as of May 2024 [1] - High yield alone is not sufficient for optimal results in dividend investing [1] Group 2: Automatic Data Processing (ADP) - ADP is a leader in human capital management solutions and has significantly increased its dividend over the past decade [2] - The company reported a 7% year-over-year revenue increase to $5.3 billion and a 14% rise in net earnings to $1.2 billion for fiscal year 2023 [2] - Adjusted EBITDA margin improved by 140 basis points to 29.3%, indicating strong business performance [3] Group 3: PepsiCo (PEP) - PepsiCo is a major player in the consumer staples sector with a diverse product portfolio [4] - The company has maintained healthy profit margins and cash flows, supported by strong global brand recognition and pricing power [5] - PepsiCo has raised its dividend for 52 consecutive years, currently yielding 3.06% [5] Group 4: Goldman Sachs (GS) - Goldman Sachs has a consistent dividend payment history, making it an attractive option despite being an investment banking firm [6] - The company reported a 16% year-over-year revenue increase to $14.21 billion and a 32% rise in EPS to $11.58 for Q1 FY24 [7] - Assets under supervision grew by $36 billion to a record $2.85 trillion, with a current yield of 2.46% and a payout ratio of 42.95% [7]

Core Insights - ExlService Holdings (EXLS) is currently more attractive to value investors compared to Automatic Data Processing (ADP) based on earnings estimate revisions and valuation metrics [1][3] Valuation Metrics - EXLS has a forward P/E ratio of 18.60, significantly lower than ADP's forward P/E of 26.49 [2] - The PEG ratio for EXLS is 1.26, while ADP's PEG ratio stands at 2.31, indicating EXLS is more favorably valued in relation to its expected earnings growth [2] - EXLS has a P/B ratio of 6.05 compared to ADP's P/B of 21.47, further highlighting EXLS's relative undervaluation [2] Overall Value Grade - EXLS holds a Value grade of B, while ADP has a Value grade of C, indicating that EXLS is the superior value option at this time [3]

Core Viewpoint - Automatic Data Processing (ADP) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks rating upgrade for ADP reflects an optimistic earnings outlook that could lead to increased buying pressure and a rise in stock price [2]. - ADP is expected to earn $9.15 per share for the fiscal year ending June 2024, representing a year-over-year increase of 11.2% [5]. Earnings Estimate Revisions - Analysts have been consistently raising their earnings estimates for ADP, with the Zacks Consensus Estimate increasing by 0.1% over the past three months [5]. - The change in earnings estimates is strongly correlated with near-term stock price movements, making it a critical factor for investors [3][4]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating [6]. - ADP's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [7].

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for Automatic Data Processing, Inc. (ADP) as of and for the three and nine months ended March 31, 2024, providing a comprehensive view of the company's financial performance and position [Statements of Consolidated Earnings](index=3&type=section&id=Statements%20of%20Consolidated%20Earnings) For the third quarter ended March 31, 2024, ADP reported total revenues of $5.25 billion, a 6.6% increase year-over-year, and net earnings of $1.18 billion, up 13.6% from the prior year Consolidated Earnings Summary (Three Months Ended March 31) | Metric | 2024 (in millions) | 2023 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $5,253.8 | $4,927.8 | +6.6% | | **Earnings Before Income Taxes** | $1,546.3 | $1,364.0 | +13.4% | | **Net Earnings** | $1,184.9 | $1,043.1 | +13.6% | | **Diluted EPS** | $2.88 | $2.51 | +14.7% | Consolidated Earnings Summary (Nine Months Ended March 31) | Metric | 2024 (in millions) | 2023 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $14,434.1 | $13,534.4 | +6.7% | | **Earnings Before Income Taxes** | $3,783.0 | $3,432.0 | +10.2% | | **Net Earnings** | $2,922.7 | $2,635.3 | +10.9% | | **Diluted EPS** | $7.07 | $6.33 | +11.7% | [Statements of Consolidated Comprehensive Income](index=4&type=section&id=Statements%20of%20Consolidated%20Comprehensive%20Income) For the third quarter of 2024, comprehensive income was $1.08 billion, a decrease from $1.37 billion in the same period of 2023, primarily due to a significant swing in unrealized net losses on available-for-sale securities Consolidated Comprehensive Income (in millions) | Period | 2024 | 2023 | | :--- | :--- | :--- | | **Three Months Ended March 31** | | | | Net Earnings | $1,184.9 | $1,043.1 | | Other Comprehensive (Loss)/Income | $(106.7) | $323.1 | | **Comprehensive Income** | **$1,078.2** | **$1,366.2** | | **Nine Months Ended March 31** | | | | Net Earnings | $2,922.7 | $2,635.3 | | Other Comprehensive Income/(Loss) | $453.9 | $(134.1) | | **Comprehensive Income** | **$3,376.6** | **$2,501.2** | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, ADP's total assets were $64.18 billion, up from $50.97 billion at June 30, 2023, largely driven by a rise in funds held for clients Key Balance Sheet Items (in millions) | Account | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $3,291.7 | $2,083.5 | | Funds held for clients | $47,929.5 | $36,333.6 | | **Total Assets** | **$64,181.6** | **$50,971.0** | | Client funds obligations | $49,512.3 | $38,538.6 | | Long-term debt | $2,990.7 | $2,989.0 | | **Total Liabilities** | **$59,554.9** | **$47,461.9** | | **Total Stockholders' Equity** | **$4,626.7** | **$3,509.1** | [Statements of Consolidated Cash Flows](index=6&type=section&id=Statements%20of%20Consolidated%20Cash%20Flows) For the nine months ended March 31, 2024, net cash provided by operating activities was $2.86 billion, with financing activities providing $9.68 billion due to increased client funds obligations Cash Flow Summary (Nine Months Ended March 31, in millions) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Operating Activities** | $2,857.0 | $3,021.9 | | **Investing Activities** | $(1,171.8) | $(2,052.8) | | **Financing Activities** | $9,683.8 | $(5,686.2) | | Effect of exchange rate changes | $(15.7) | $(25.3) | | **Net change in cash** | **$11,353.3** | **$(4,742.4)** | [Notes to the Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the accounting policies and financial data presented in the consolidated statements, covering revenue recognition, investments, assets, debt, and segment reporting [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for the third quarter and first nine months of fiscal 2024, highlighting solid revenue growth, strategic priorities including generative AI, and detailed financial analysis - For the nine months ended March 31, 2024, ADP delivered solid revenue growth of **7%** (**6%** organic constant currency), driven by a **2%** growth in pays per control and a **2%** increase in PEO average worksite employees[99](index=99&type=chunk) - The company is advancing its strategic priorities by rolling out ADP Assist, which uses generative AI to enhance HR productivity, and extending GenAI capabilities to its service associates to improve client experience[98](index=98&type=chunk) Nine Months Ended March 31, 2024 Highlights | Metric | Performance | | :--- | :--- | | Revenue Growth | **7%** to **$14.4B** (**6%** organic constant currency) | | Adjusted EBIT Margin | Expansion of **60 bps** | | Diluted and Adjusted Diluted EPS Growth | **12%** to **$7.07** and **$7.08**, respectively | | Cash Returned to Shareholders | **$2.4B** (**$1.6B** dividends, **$0.8B** repurchases) | [Results and Analysis of Consolidated Operations](index=24&type=section&id=Results%20and%20Analysis%20of%20Consolidated%20Operations) Consolidated revenues for the nine months ended March 31, 2024, increased **7%** to **$14.4 billion**, with EBIT margin expanding by **90 basis points** to **26.2%**, reflecting operating efficiencies and higher interest income Consolidated Revenue Growth (YoY) | Period | Total Revenue Growth | Organic Constant Currency Growth | | :--- | :--- | :--- | | **Three Months Ended Mar 31** | 7% | 6% | | **Nine Months Ended Mar 31** | 7% | 6% | - Interest on funds held for clients increased to **$747.9 million** for the nine-month period from **$577.7 million** a year ago, driven by a higher average interest rate (**2.8%** vs **2.3%**) and a **3.5%** increase in average client funds balances[103](index=103&type=chunk) - Total expenses for the nine months rose **6%** to **$10.8 billion** Key drivers included a **14%** increase in R&D expenses for product development and GenAI integration, and a **77%** jump in interest expense due to higher borrowing rates and volumes[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) [Segment Results](index=29&type=section&id=Segment%20Results) For the nine months ended March 31, 2024, Employer Services revenue grew **8%** to **$9.8 billion** with margin expansion, while PEO Services revenue grew **3%** to **$4.7 billion** but experienced margin contraction Segment Performance (Nine Months Ended March 31, 2024) | Segment | Revenue Growth (As Reported) | Earnings Before Income Taxes Growth | Margin | Margin Change (YoY) | | :--- | :--- | :--- | :--- | :--- | | **Employer Services** | +8% | +15% | 35.8% | +200 bps | | **PEO Services** | +3% | -4% | 15.2% | -130 bps | - Employer Services' performance was boosted by new business, strong retention, a **2%** increase in pays per control, and higher interest earned on client funds[119](index=119&type=chunk)[120](index=120&type=chunk) - PEO Services' earnings were negatively impacted by lower releases of workers' compensation reserves in ADP Indemnity, which amounted to a pre-tax benefit of only **$6.1 million** in the nine-month period compared to **$32.1 million** in the prior year[123](index=123&type=chunk)[125](index=125&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=34&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) ADP maintains a solid financial position with **$3.3 billion** in cash and cash equivalents, supported by **$9.7 billion** in committed credit facilities and a commercial paper program to ensure liquidity - The company has a **$9.7 billion** commercial paper program and **$9.7 billion** in committed credit facilities to support liquidity for corporate purposes and client fund obligations[135](index=135&type=chunk)[136](index=136&type=chunk)[144](index=144&type=chunk) - Net cash flow from financing activities changed significantly, providing **$9.7 billion** in the nine months to March 2024 versus using **$5.7 billion** in the prior year, mainly due to a **$14.4 billion** net increase in cash flow from client funds obligations[138](index=138&type=chunk)[139](index=139&type=chunk) - During the nine months ended March 31, 2024, ADP repurchased **3.3 million** shares of its common stock for **$796.2 million**[140](index=140&type=chunk)[20](index=20&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) ADP is exposed to market risks, primarily interest rate, credit, and foreign currency risks, managed through a laddered investment strategy and high-quality securities - The company's client funds investment strategy ladders maturities out to five years (extended portfolio) and ten years (long portfolio) to average through interest rate cycles[150](index=150&type=chunk) - A hypothetical **25 basis point** change in both short-term and intermediate-term interest rates would result in an approximate **$19 million** impact to earnings before income taxes over the next twelve months[156](index=156&type=chunk) - Credit risk is mitigated by investing in high-grade securities, with minimum ratings of BBB for corporate bonds and AAA for asset-backed securities at the time of purchase[152](index=152&type=chunk)[157](index=157&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[161](index=161&type=chunk) - No changes occurred during the quarter ended March 31, 2024, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[162](index=162&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various claims and litigation in the normal course of business, with management believing that their ultimate resolution will not materially impact financial condition or results - The company is vigorously defending against a putative class action complaint filed in May 2020, which alleges violations of ERISA in connection with the ADP TotalSource Retirement Savings Plan The company cannot estimate a reasonably possible loss for this matter[75](index=75&type=chunk) - Management believes that the resolution of various claims and litigation from the normal course of business will not have a material adverse impact on the company's financial condition or results[164](index=164&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2023 - No material changes have occurred in the company's risk factors since the filing of its Annual Report on Form 10-K for the fiscal year ended June 30, 2023[165](index=165&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the three months ended March 31, 2024, ADP repurchased **1,221,074** shares, with approximately **$3.51 billion** remaining available for future repurchases under its common stock repurchase plan Issuer Purchases of Equity Securities (Q3 FY2024) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased Under Plan | | :--- | :--- | :--- | :--- | | Jan 2024 | 178,249 | $236.60 | 177,549 | | Feb 2024 | 512,379 | $250.89 | 512,114 | | Mar 2024 | 530,446 | $245.21 | 530,196 | | **Total** | **1,221,074** | **-** | **1,219,859** | - As of March 31, 2024, the approximate dollar value of shares that may yet be purchased under the common stock repurchase plan is **$3.51 billion**[166](index=166&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO pursuant to the Sarbanes-Oxley Act of 2002 and various Inline XBRL documents - Exhibits filed include CEO and CFO certifications under Rules 13a-14(a) and Section 906 of the Sarbanes-Oxley Act, along with Inline XBRL data files[170](index=170&type=chunk)

Core Insights - Automatic Data Processing, Inc. (ADP) reported strong third-quarter fiscal 2024 results, with earnings and revenues exceeding expectations [1] Financial Performance - Earnings per share reached $2.9, surpassing the consensus estimate by 4.4% and increasing 14.3% year-over-year [1] - Total revenues amounted to $5.3 billion, slightly beating the consensus estimate and growing 6.6% year-over-year on a reported basis, and 6% on an organic constant-currency basis [1] Segmental Results - Employer Services generated revenues of $3.6 billion, an 8% increase on a reported basis and 7% at constant currency, meeting estimates [2] - PEO Services revenues rose 5% year-over-year to $1.7 billion, exceeding the estimate of $1.6 billion [2] - Interest on funds held for clients grew 29% year-over-year to $321 million, surpassing the estimate of $255.8 million [2] - Average client funds balance increased 6% to $41.7 billion, with an average interest yield on client funds expanding 50 basis points to 3.1% [2] Margins - Adjusted EBIT increased 12% year-over-year to $1.5 billion, with the adjusted EBIT margin growing 140 basis points to 29.3% [3] - The margin for Employer Services increased by 230 basis points, while PEO Services saw a decrease of 220 basis points [3] Balance Sheet & Cash Flow - ADP ended the third quarter with cash and cash equivalents of $3.3 billion, up from $1.6 billion in the previous quarter [4] - Long-term debt remained flat at $3 billion [4] - The company generated $1.5 billion in cash from operating activities during the quarter, with capital expenditure amounting to $1.9 million [4] FY24 Outlook - For fiscal year 2024, ADP anticipates revenue growth of 6-7% and adjusted EPS growth of 10-12% [5] - The adjusted effective tax rate is expected to be 23%, with an adjusted EBIT margin growth of 60-70 basis points [5] - Employer Services revenues are projected to grow by 7-8%, while PEO Services revenues are expected to rise by 3-4% [5]

Labor Market Insights - Private-sector payrolls for April increased by 192K, surpassing the consensus estimate of 183K, but down from the revised 208K in March, indicating a warming trend in job growth [1] - The three-month average for private-sector job growth is now higher than the previous six months, suggesting a positive shift in the labor market [1] - Wage growth has moderated, with those remaining in their positions seeing a flat increase of 5%, while job changers experienced a decrease in wage growth to 9.3% from 10% in March [1] Job Creation by Company Size - Large companies (over 500 employees) contributed the majority of new jobs at 98K, while smaller companies (fewer than 50 employees) added the least at 38K, and medium-sized firms added 62K [2] - The Leisure & Hospitality sector led job creation with 56K new jobs, followed by Construction with 35K and Trade/Transportation/Utilities with 26K, indicating a trend towards industries requiring less formal education [2] Employment Projections - The upcoming nonfarm payroll estimate is projected at 240K new jobs, reflecting a recovery from a sub-200K period late last year, with an average of 280K new jobs per month since December [3] - Employment remains strong, although a slight decrease is expected in future reports [3] Corporate Earnings Reports - Mastercard reported Q1 earnings of $3.31 per share, exceeding expectations of $3.22 and significantly higher than $2.80 from the same quarter last year, with revenues of $6.35 billion slightly above the consensus [5] - Despite beating estimates, Mastercard's stock experienced a -3% decline in early trading due to guidance being lowered [5] - Estee Lauder's fiscal Q3 earnings of 97 cents per share more than doubled expectations of 48 cents, with revenues of $3.94 billion slightly exceeding projections [5] - However, Estee Lauder's stock fell -4% in pre-market trading due to lowered guidance related to concerns in the Chinese market [5]

Financial Data and Key Metrics Changes - The company reported a strong 7% revenue growth and a 14% adjusted diluted EPS growth for Q3 2024, indicating solid financial performance [6][18] - Employer Services (ES) segment revenue grew 8% on a reported basis and 7% on an organic constant currency basis [18] - The ES margin increased by 230 basis points in Q3, driven by operating leverage and client funds interest revenue growth [21] Business Line Data and Key Metrics Changes - Employer Services new business bookings reached record levels, with strong growth across small business, midmarket, enterprise, and international segments [6][7] - PEO revenue growth was 5% for Q3, driven by a 3% increase in average worksite employees [22] - The ES pays per control growth remained steady at 2%, reflecting a resilient U.S. labor market [8][20] Market Data and Key Metrics Changes - The company reached 1 million paid employees on its I-HCM platform, expanding its presence in Europe and the APAC region [12] - The demand environment remains steady, with companies continuing to hire and invest in HCM solutions [39] Company Strategy and Development Direction - The company is focused on three strategic priorities: leading with best-in-class HCM technology, providing unmatched service and expertise, and leveraging global scale [9][11] - Investments in GenAI are aimed at enhancing client experience and operational efficiency, with a focus on embedding AI capabilities across various platforms [10][63] - The company is optimistic about growth opportunities in international markets, particularly in Asia-Pacific and the Nordics [72][74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall retention results and the positive impact of investments in product and client satisfaction [31][32] - The company anticipates some margin pressure due to increased GenAI-related spending but expects continued tailwinds from interest rates [25][51] - For fiscal 2025, the company plans for pays per control growth to be below normal levels, with a focus on maintaining strong client satisfaction and retention [24][25] Other Important Information - The company is celebrating its 75th anniversary in 2024, emphasizing its commitment to delivering value to clients [12] - The ADP marketplace continues to be a differentiator, with established AI principles for partners to ensure responsible AI use [11] Q&A Session Summary Question: Trends in open enrollment season for client benefit elections within the PEO - Management noted it is too early to make a full-year call on retention but observed slight improvement in PEO retention this year [28] Question: Drivers of client retention - Management highlighted investments in product and record client satisfaction as key drivers of strong retention results [31] Question: Underlying assumptions for ES revenue growth - Management indicated that strong retention and favorable client funds interest impacts are contributing to confidence in revenue growth [36] Question: Competitive landscape in the mid-market - Management stated that the mid-market remains competitive, but ADP's strong execution and product investments are yielding positive results [80] Question: Pricing strategy and market conditions - Management emphasized a thoughtful approach to pricing, monitoring market conditions, and ensuring value for clients [59][84] Question: Market share gains in the mid-market - Management indicated that ADP is winning market share from various competitors, driven by product investments and strong execution [88]

Labor Market Overview - Private-sector payrolls for April increased by 192K, surpassing the consensus estimate of 183K, but down from the revised 208K in March, indicating a warming labor market [1] - The three-month average job growth is now higher than the previous six months, suggesting a positive trend in employment [1] Wage Growth Insights - Wage growth has moderated, with those remaining in their positions seeing a flat increase of 5%, while job changers experienced a decrease in wage growth to 9.3% from 10% in March [1] - The slower wage growth relative to job growth is viewed positively, as it alleviates concerns about rising wage costs [1] Job Creation by Company Size - Large companies (over 500 employees) contributed the majority of new jobs at 98K, while small companies (fewer than 50 employees) added the least at 38K, and medium-sized firms added 62K [2] - The Leisure & Hospitality sector led job creation with 56K new jobs, followed by Construction with 35K and Trade/Transportation/Utilities with 26K, indicating a trend towards industries requiring less formal education [2] Upcoming Economic Reports - The upcoming nonfarm payroll estimate is projected at 240K new jobs, reflecting a recovery from a sub-200K period late last year, with an average of 280K new jobs per month since December [3] - The March JOLTS report, Construction Spending for March, and ISM Manufacturing for April are expected to be released, along with the Federal Reserve's decision on interest rates [4] Company Earnings Reports - Mastercard reported Q1 earnings of $3.31 per share, exceeding expectations of $3.22, with revenues of $6.35 billion slightly above the consensus of $6.33 billion, but the stock fell 3% due to lowered guidance [5] - Estee Lauder's fiscal Q3 earnings of 97 cents per share significantly surpassed the anticipated 48 cents, with revenues of $3.94 billion slightly above projections, yet the stock declined 4% due to lowered guidance related to concerns in the Chinese market [5]

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]