Why Is Software Megacap ADP's Stock Trading Higher Today?
Portfolio Pulse from Anusuya Lahiri
Automatic Data Processing, Inc (NASDAQ:ADP) reported fiscal third-quarter 2024 revenues of $5.25 billion, surpassing analyst expectations of $5.23 billion, marking a 7% year-over-year increase. The company's adjusted EPS of $2.88 also beat the consensus of $2.79. Adjusted EBIT rose 12% to $1.5 billion, with a 140 bps increase in adjusted EBIT margin to 29.3%. Net earnings grew 14% Y/Y to $1.2 billion. ADP reiterated its FY24 revenue growth outlook of 6%-7% and adjusted diluted EPS growth of 10%-12%. ADP stock is up 3.75% to $250.95. Investors can also gain exposure through Madison ETFs Trust Madison Dividend Value ETF (NYSE:DIVL) and Litman Gregory Funds Trust Polen Capital Global Growth ETF (NYSE:PCGG).
May 01, 2024 | 7:15 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
ADP reported higher than expected Q3 fiscal 2024 revenues and EPS, leading to a 3.75% increase in its stock price to $250.95.
ADP's earnings beat and positive FY24 outlook likely contribute to investor optimism, driving the stock price up in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to ADP's stock performance through Madison ETFs Trust Madison Dividend Value ETF (DIVL).
As DIVL includes ADP in its holdings, ADP's strong performance and positive outlook may indirectly benefit DIVL's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to ADP's stock performance through Litman Gregory Funds Trust Polen Capital Global Growth ETF (PCGG).
PCGG, holding ADP shares, may see indirect benefits from ADP's earnings beat and optimistic future revenue and EPS growth projections.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50