What does Automatic Data Processing (ADP) expect in Q3 results?

Automatic Data Processing, Inc. ADP should report third quarter of fiscal 2022 results on April 27, before trading.

Let’s see how things went for this announcement.

Expectations this time around

Zacks’ consensus estimate for third-quarter revenue is $4.46 billion, indicating growth of 8.7% from the figure reported a year ago.

The consensus brand for Services for employers revenue is pegged at $2.96 billion, implying 6.4% growth over the reported figure for the prior year quarter. The increase was likely driven by growth in new business bookings.

The consensus estimate of PEO Services revenue is pegged at $1.51 billion, indicating 13.9% year-over-year growth. The rise was likely driven by an increase in the average number of construction workers paid by PEO Services.

The consensus brand for Interest on funds held for clients revenue is pegged at $128 million, indicating 19.6% year-over-year growth. The strength of the firm’s average client fund balances may have contributed to segment growth.

The consensus earnings estimate is $2.07 per share, implying 9.5% year-over-year growth.

What our model says

Our proven model does not conclusively predict an increase in profits for automatic data processing this time around. The combination of a positive ESP Earnings and a Zacks rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of beating gains. But it is not the case here. You can discover the best stocks to buy or sell before they’re flagged with our Income ESP filter.

Automatic Data Processing has an ESP of 0.00% and a Zacks Rank #2.

Automatic Data Processing, Inc. Prize and EPS Surprise

Automatic Data Processing, Inc. price-eps-surprise | Automatic Data Processing, Inc. Quote

Actions to Consider

Here are some actions from the wider Zacks Business services sector that investors can consider, because our model shows that they have the right combination of elements to beat on their results for the first quarter of 2022:

Cross Country Health Care CCRN has a +1.67% win ESP and a #1 Zacks rank. You can see the full list of today’s Zacks #1 Rank stocks here.

Cross Country Healthcare has an expected profit growth rate of 15.4% for the current year. The company has a four-quarter earnings surprise of 41.5% on average.

Shares of Cross Country Healthcare have jumped 62.6% over the past year. The company has long-term earnings growth of 6.5%.

First advantage FA has a +5.63% Earnings ESP and a #2 Zacks rank.

First Advantage forecasts an earnings growth rate of 0.9% for the current year.

First Advantage has a four-quarter earnings surprise of 45.1% on average.

WEX WEX has a +1.57% win ESP and a #3 Zacks rank.

WEX has an expected earnings growth rate of 27.6% for the current year. The company has a surprise on earnings for the last four quarters of 9.9% on average.

WEX has long-term earnings growth of 17.4%.

Stay up to date with upcoming results announcements with the Zacks Earnings Schedule.

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Automatic Data Processing, Inc. (ADP): Free Inventory Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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