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What Analyst Projections for Key Metrics Reveal About ADP (ADP) Q3 Earnings
ZACKSยท 2025-04-25 14:20
Core Insights - Automatic Data Processing (ADP) is expected to report quarterly earnings of $2.96 per share, a 2.8% increase year-over-year, with revenues projected at $5.49 billion, reflecting a 4.6% year-over-year growth [1] Earnings Projections - Analysts emphasize the importance of revisions to earnings projections prior to a company's earnings release, as these revisions are critical indicators of potential investor behavior [2] - The consensus EPS estimate for ADP has remained unchanged over the past 30 days, indicating a collective reassessment by covering analysts [1] Key Metrics Estimates - Revenue from 'Interest on funds held for clients' is projected to be $330.29 million, marking a 3% increase from the prior-year quarter [4] - 'PEO revenues' are expected to reach $1.73 billion, indicating a year-over-year change of 4.2% [4] - 'Revenues, other than interest on funds held for clients and PEO revenues' are forecasted to be $3.43 billion, suggesting a 4.8% year-over-year increase [5] - 'Segment revenues- Employer Services' are anticipated to be $3.77 billion, reflecting a 5% increase from the prior-year quarter [5] - 'Segment revenues- PEO Services' are projected to reach $1.73 billion, indicating a 3.7% increase from the year-ago quarter [5] Market Performance - ADP shares have decreased by 3.6% over the past month, compared to a 4.8% decline in the Zacks S&P 500 composite, suggesting that ADP is expected to mirror overall market performance in the near future [6]