What does Automatic Data Processing (ADP) expect in Q4 results?

Automatic Data Processing, Inc. ADP must account fourth quarter of fiscal 2022 results on July 27, before trading.

Let’s see how things went for this announcement.

Expectations this time around

Zacks’ consensus estimate for fiscal fourth quarter revenue is $4.05 billion, indicating growth of 8.5% over the figure reported for the prior year’s fiscal quarter.

Automatic Data Processing, Inc. Prize and EPS Surprise

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

The consensus mark for Employer Services revenue is set at $2.67 billion, implying growth of 5.5% over the reported figure for the prior year’s fiscal quarter. The rise was likely driven by growth in new business bookings, strong retention and pay-per-check trends.

The consensus estimate for PEO services revenue is set at $1.38 billion, indicating 14% growth over the reported figure for the prior year’s fiscal quarter. The rise was likely driven by an increase in the average number of construction workers paid by PEO Services.

The consensus rating for interest on funds held for client revenue is set at $122 million, indicating growth of 18.4% over the reported figure for the prior year. The strength of Automatic Data Processing‘s average client fund balances may have contributed to its sector growth.

The consensus earnings estimate is $1.48 per share, implying growth of 23.3% over the reported figure for the prior year’s fiscal quarter.

What our model says

Our proven model conclusively predicts increased 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. You can discover the best stocks to buy or sell before they’re flagged with our Income ESP filter.

Automatic Data Processing has a Gain ESP of +2.86% and a Zacks Rank #3.

Other actions to consider

Here are some other stocks to consider among the wider Zacks Business services sector, because our model shows that these have the right combination of elements to beat on the results of the second quarter of 2022:

Lumen Technologies, Inc. LUMN has a +0.58% Earnings ESP and a #1 Zacks Rank (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks here.

LUMN has a four-quarter earnings surprise of 17.6% on average.

Booz Allen Hamilton Holding Corporation BAH has a Gain ESP of +4.41% and a Zacks Rank of 3.

Booz Allen forecasts a profit growth rate of 3.3% for the current year. BAH has a surprise on earnings for the last four quarters of 9.5% on average.

Avis Budget Group, Inc. CAR has a +22.33% earnings ESP and is ranked No. 2 from Zacks.

Avis Budget forecasts a profit growth rate of 74.4% for the current year. CAR delivered a four-quarter earnings surprise of 102%, on average.

Stay up to date with upcoming results announcements with the Zacks earnings schedule.

Zacks names ‘only one best choice for doubling up’

From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.

It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could step in at any time.

This company could rival or surpass other recent Zacks stocks that are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.Free: See our best stock and our 4 finalists >>

Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report

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

Avis Budget Group, Inc. (CAR): Free Inventory Analysis Report

Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report

Lumen Technologies, Inc. (LUMN): Free Stock Analysis Report

To read this article on Zacks.com, click here.

Zacks Investment Research

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

Comments are closed.