Zacks Research Has Pessimistic Outlook of ADP Q2 Earnings

Automatic Data Processing, Inc. (NASDAQ:ADP) – Stock analysts at Zacks Research decreased their Q2 2025 earnings estimates for shares of Automatic Data Processing in a research report issued to clients and investors on Wednesday, November 20th. Zacks Research analyst R. Department now expects that the business services provider will post earnings per share of $2.27 for the quarter, down from their prior estimate of $2.34. The consensus estimate for Automatic Data Processing’s current full-year earnings is $9.93 per share. Zacks Research also issued estimates for Automatic Data Processing’s Q3 2025 earnings at $3.02 EPS, Q4 2025 earnings at $2.30 EPS, FY2025 earnings at $9.92 EPS, Q1 2026 earnings at $2.46 EPS, Q2 2026 earnings at $2.61 EPS, Q3 2026 earnings at $2.96 EPS, Q4 2026 earnings at $2.73 EPS, FY2026 earnings at $10.75 EPS, Q1 2027 earnings at $2.65 EPS and FY2027 earnings at $11.69 EPS.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, October 30th. The business services provider reported $2.33 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.21 by $0.12. The business had revenue of $4.83 billion for the quarter, compared to analyst estimates of $4.77 billion. Automatic Data Processing had a return on equity of 82.36% and a net margin of 19.72%. The company’s revenue for the quarter was up 7.1% compared to the same quarter last year. During the same period in the previous year, the company earned $2.08 earnings per share.

A number of other analysts also recently weighed in on ADP. TD Cowen lifted their price target on shares of Automatic Data Processing from $276.00 to $285.00 and gave the stock a “hold” rating in a research note on Friday, November 1st. Mizuho boosted their target price on shares of Automatic Data Processing from $281.00 to $310.00 and gave the stock an “outperform” rating in a research report on Monday, November 4th. UBS Group increased their price target on shares of Automatic Data Processing from $270.00 to $295.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 22nd. Royal Bank of Canada lifted their price target on Automatic Data Processing from $267.00 to $315.00 and gave the stock a “sector perform” rating in a research note on Thursday, October 31st. Finally, Citigroup upped their price objective on Automatic Data Processing from $260.00 to $295.00 and gave the company a “neutral” rating in a research note on Wednesday, September 25th. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and two have issued a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $289.91.

Automatic Data Processing Price Performance

ADP stock opened at $305.15 on Friday. The stock’s 50 day moving average is $289.55 and its two-hundred day moving average is $266.02. Automatic Data Processing has a 52-week low of $227.12 and a 52-week high of $309.37. The company has a market capitalization of $124.34 billion, a PE ratio of 32.57, a P/E/G ratio of 3.54 and a beta of 0.79. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.56.

Automatic Data Processing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 1st. Investors of record on Friday, December 13th will be issued a $1.54 dividend. This represents a $6.16 dividend on an annualized basis and a yield of 2.02%. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $1.40. The ex-dividend date is Friday, December 13th. Automatic Data Processing’s dividend payout ratio is 59.77%.

Insider Buying and Selling

In other news, VP Sreenivasa Kutam sold 38,975 shares of the company’s stock in a transaction that occurred on Wednesday, November 6th. The shares were sold at an average price of $300.00, for a total value of $11,692,500.00. Following the completion of the sale, the vice president now directly owns 32,604 shares of the company’s stock, valued at approximately $9,781,200. This represents a 54.45 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Maria Black sold 19,147 shares of the firm’s stock in a transaction that occurred on Tuesday, September 3rd. The shares were sold at an average price of $274.38, for a total transaction of $5,253,553.86. Following the transaction, the chief executive officer now owns 92,807 shares in the company, valued at $25,464,384.66. This represents a 17.10 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 96,946 shares of company stock valued at $27,462,781 in the last three months. 0.21% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Automatic Data Processing

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ADP. Itau Unibanco Holding S.A. bought a new position in Automatic Data Processing during the third quarter valued at about $26,000. Kiely Wealth Advisory Group Inc. acquired a new stake in Automatic Data Processing in the 2nd quarter valued at about $27,000. Dunhill Financial LLC boosted its position in shares of Automatic Data Processing by 346.5% during the 3rd quarter. Dunhill Financial LLC now owns 106 shares of the business services provider’s stock valued at $29,000 after purchasing an additional 149 shares in the last quarter. Hexagon Capital Partners LLC grew its stake in shares of Automatic Data Processing by 78.5% in the 3rd quarter. Hexagon Capital Partners LLC now owns 116 shares of the business services provider’s stock worth $32,000 after purchasing an additional 51 shares during the last quarter. Finally, Capital Performance Advisors LLP bought a new stake in shares of Automatic Data Processing in the 3rd quarter worth approximately $35,000. 80.03% of the stock is owned by institutional investors.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.