ADP Clocks 26th Consecutive EPS Beat In Q2, Reiterates Financial Growth Outlook
Portfolio Pulse from Anusuya Lahiri
Automatic Data Processing, Inc. (ADP) reported Q2 revenues of $4.67 billion, slightly above the consensus of $4.66 billion, and a 6% Y/Y increase. Adjusted EPS was $2.13, surpassing the $2.10 analyst consensus. Adjusted EBIT rose 7% to $1.1 billion, with a margin increase to 24.6%. Net earnings grew 8% Y/Y to $878.4 million. ADP reiterated its FY24 outlook with revenue growth of 6%-7% and adjusted EPS growth of 10%-12%. ADP shares rose 3.37% to $246.64. Over the past 5 years, ADP's revenue grew at 6.44% annually, with shares outperforming the S&P 500 and the Industrials sector.
January 31, 2024 | 5:25 pm
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POSITIVE IMPACT
ADP reported higher than expected Q2 revenues and adjusted EPS, with a positive outlook for FY24. Shares increased by 3.37% following the announcement.
ADP's positive earnings report and the reiteration of a strong outlook for FY24 are likely to instill investor confidence and could lead to a continued short-term upward trend in the stock price. The company's consistent performance and growth projections align with historical outperformance, which may further bolster investor sentiment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100