What Does Wall Street See for Automatic Data Processing's Q4?
Automatic Data Processing (NAS: ADP) is expected to report Q4 earnings on Aug. 1. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Automatic Data Processing's revenues will grow 6.7% and EPS will increase 7.5%.
The average estimate for revenue is $2.81 billion. On the bottom line, the average EPS estimate is $0.57.
Last quarter, Automatic Data Processing reported revenue of $3.11 billion. GAAP reported sales were 7.0% higher than the prior-year quarter's $2.91 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, EPS came in at $0.99. GAAP EPS of $0.99 for Q3 were 8.8% higher than the prior-year quarter's $0.91 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 51.3%, 30 basis points worse than the prior-year quarter. Operating margin was 22.9%, 20 basis points worse than the prior-year quarter. Net margin was 15.5%, much about the same as the prior-year quarter.
The full year's average estimate for revenue is $11.31 billion. The average EPS estimate is $2.92.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,095 members out of 1,157 rating the stock outperform, and 62 members rating it underperform. Among 394 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 382 give Automatic Data Processing a green thumbs-up, and 12 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 $63.55.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Automatic Data Processing. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Automatic Data Processing to My Watchlist.
The article What Does Wall Street See for Automatic Data Processing's Q4? originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Automatic Data Processing. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.