Golf Clap for Automatic Data Processing

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Automatic Data Processing (Nasdaq: ADP) reported earnings on Aug. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q4), Automatic Data Processing met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.

Margins grew across the board.

Revenue details
Automatic Data Processing reported revenue of $2.64 billion. The 20 analysts polled by S&P Capital IQ expected a top line of $2.65 billion on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $2.51 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.53. The 25 earnings estimates compiled by S&P Capital IQ anticipated $0.53 per share. GAAP EPS of $0.53 for Q4 were 8.2% higher than the prior-year quarter's $0.49 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 48.2%, 50 basis points better than the prior-year quarter. Operating margin was 14.0%, 90 basis points better than the prior-year quarter. Net margin was 9.8%, 20 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.66 billion. On the bottom line, the average EPS estimate is $0.64.

Next year's average estimate for revenue is $11.47 billion. The average EPS estimate is $2.96.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,074 members out of 1,135 rating the stock outperform, and 61 members rating it underperform. Among 356 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 347 give Automatic Data Processing a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Automatic Data Processing is outperform, with an average price target of $59.53.

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