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Automatic Data Processing, Inc. (NASDAQ:ADP) is scheduled to report its Q4 2012 results on August 1, 2012, before market opens. The Street expects EPS and revenue of $0.53 and $2.66B, respectively.

In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from ADP and the news from its closest competitors.

Automatic Data Processing, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last three quarters. In the last quarter, it reported $0.92 EPS, just beating analyst estimates of $0.91.

Automatic Data Processing, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.53 based on 25 analysts' estimates, up from $0.48 a year ago. Revenue estimates are $2.66B, up from $2.51B a year ago. The median target price by analysts for the stock is $60.00.

Average recommendation: Hold

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On May 25, 2012, Barclays reiterated Overweight rating for the company.
  • On February 29, 2012, UBS initiated Buy rating for the company.

Latest News

  • On July 12, 2012, Automatic Data Processing, Inc. announced that it has signed a five-year contract with the City of Reno, Nevada, for human capital management services in support of 1500 city employees.
  • On April 25, 2012, Automatic Data Processing, Inc. announced that the Board of Directors has declared a regular quarterly dividend of $0.395 per share payable July 1, 2012, to shareholders of record on June 8, 2012.
  • On April 3, 2012, Automatic Data Processing, Inc. announced that it has completed its acquisition of the human resource solutions subsidiary of SHPS, Inc., a provider of benefits administration services.

Competitors

Korn/Ferry (NYSE:KFY), ManpowerGroup (NYSE:MAN), Insperity (NYSE:NSP), and Paychex (NASDAQ:PAYX) are considered major competitors for Automatic Data Processing and the table below provides the key metrics for these companies and the industry.

Automatic Data Processing, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period.

ADP Chart

ADP data by YCharts

Competitors' Latest Development

  • On July 20, 2012, Dow Jones reported that ManpowerGroup announced that the company expects to report third quarter FY 2012 diluted earnings per share (EPS) at between USD 0.64 to USD 0.72, including an estimated unfavorable currency impact of USD 0.08 per share.
  • On July 19, 2012, Insperity Inc announced a strategic alliance between InsperityTM Expense Management and nuTravel Technology Solutions, LLC, a corporate online booking tools provider.
  • On July 18, 2012, ManpowerGroup announced that it has successfully completed its acquisition of the remaining 26% stake in Kolkata-based Web Development Company Limited, a IT services and professional resourcing company offering consulting, development and application support services to several clients in India and across the Asia Pacific region.
  • On June 13, 2012, Korn/Ferry International announced that for the first quarter of 2013, it expects fee revenue to be in the range of $172 million to $188 million and diluted earnings per share to be in the range of $0.14 to $0.22. According to I/B/E/S Estimates, analysts on an average are expecting the Company to report revenue of $200 million and EPS of $0.30 for first quarter of 2013.
  • On May 16, 2012, Insperity Inc announced that its Board of Directors has approved an increase in its quarterly cash dividend to $0.17 per share. The cash dividend - representing an increase of $0.02 per share over the prior quarter - will be paid on June 22, 2012, to all stockholders of record as of June 1, 2012.
  • On May 3, 2012, Manpower Inc. announced that its Board of Directors has approved an increase in the semi-annual dividend to $0.43 per share, from $0.40 per share. The dividend is payable on June 15, 2012 to shareholders of record on June 1, 2012.
  • On April 30, 2012, Insperity Inc announced that for fiscal 2012, it expects earnings per share in the range of $1.58-$1.72. According to I/B/E/S estimates, analysts were expecting the company to report EPS of $1.66 for fiscal 2012.
  • On April 27, 2012, Manpower Inc. announced a new contract, worth at least $400 million over five years, for Recruiting Services to the Australian Defence Force (ADF). The new contract renews ManpowerGroup's Recruitment Process Outsourcing (RPO) collaboration with the ADF for the next five years - and has set a record as the industry's RPO partnership.
  • On April 20, 2012, Manpower Inc. announced that it anticipate second quarter 2012 earnings per share will range between $0.68 to $0.76. This includes an unfavorable impact of 4 cents per share related to currency changes in the quarter.
  • On March 7, 2012, Korn/Ferry International announced that for fourth quarter of 2012, it expects fee revenue to be in the range of $182-$196 million and diluted earnings per share (excluding $0.03-$0.04 of estimated non-recurring compensation related charges or $0.21-$0.27 measured by GAAP) to be $0.24-$0.30. According to I/B/E/S Estimates, analysts on an average are expecting the Company to report revenue of $193 million and EPS of $0.27 for fourth quarter of 2012.
  • On February 21, 2012, Korn/Ferry International announced that Robert Rozek has been appointed Chief Financial Officer effective immediately.
  • On February 14, 2012, Insperity Inc announced that for first quarter of 2012, it expects earnings per share $0.48-$0.54. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $0.38 for first quarter of 2012.

Technical Overview


The stock has a market capitalization of $28.17B and is currently trading at $57.60 with a 52-week range of $44.72-$57.72. The stock's year-to-date performance has been 8.25%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Automatic Data Processing