What does Automatic Data Processing (ADP) expect in Q2 results?
This story originally appeared on Zacks
Automatic Data Processing, Inc. ADP is expected to release its second-quarter fiscal 2022 results on Jan. 26, before markets open.
Let’s see how things went for this announcement.
Expectations this time around
Zacks’ consensus estimate for second-quarter revenue is $3.98 billion, indicating growth of 7.7% from the figure reported a year ago.
The consensus mark for Employer Services revenue is set at $2.65 billion, implying growth of 5.6% over the reported figure for the prior year quarter. The increase was likely driven by growth in new business bookings. The consensus estimate for PEO services revenue is pegged at $1.34 billion, indicating 12.9% year-over-year growth. The rise was likely driven by an increase in the average number of construction workers paid by PEO Services.
The consensus rating for interest on funds held for client revenue is set at $104 million.
The consensus earnings estimate is $1.63 per share, implying 7.2% year-over-year growth.
What our model says
Our proven model does not conclusively predict an increase in profits for automatic data processing this time around. The combination of a positive Earnings ESP and a Zacks rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of beating Earnings. But it is not the case here. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.
Automatic Data Processing has an ESP of 0.00% and a Zacks Rank #3.
Actions to consider
Here are some stocks from the broader Zacks business services sector that investors can consider, as our model shows they have the right combination of elements to beat on Q4 2021 results:
Clean ports (HLC) has a +7.20% win ESP and a #2 Zacks rank. You can see the full list of today’s Zacks #1 Rank stocks here.
Clean Harbors has an expected profit growth rate of 3.4% for the current year. The company has a surprise on earnings for the last four quarters of 50.5% on average.
Shares of Clean Harbors have jumped 13.9% over the past year.
set of facts FDS has a +0.29% win ESP and a #2 Zacks rank.
FactSet forecasts a 10.6% profit growth rate for the current year. The company has an earnings surprise for the last four quarters of 3.3% on average.
FactSet shares have jumped 32.3% over the past year. The company forecasts a long-term earnings growth rate of 8.4%.
Genpact (g) has a +0.39% win ESP and a #2 Zacks rank.
Genpact forecasts a profit growth rate of 9.7% for the current year. The company has a surprise on earnings for the last four quarters of 15.1% on average.
Genpact shares have jumped 21.7% over the past year. The company’s long-term earnings growth rate is projected at 14.8%.
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Automatic Data Processing, Inc. (ADP): Free Inventory Analysis Report
FactSet Research Systems Inc. (FDS): Free Stock Analysis Report
Genpact Limited (G): Free Stock Analysis Report
Clean Harbors, Inc. (CLH): Free Stock Analysis Report
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