Valued at a market cap of $124.1 billion, Automatic Data Processing, Inc. (ADP) provides cloud-based human capital management (HCM) solutions. The Roseland, New Jersey-based company offers various HCM solutions, including payroll, talent management, Human Resources and benefits administration, and time and attendance management to employers around the world. It is expected to announce its fiscal Q4 earnings for 2025 before the market opens on Wednesday, Jul. 30.
Ahead of this event, analysts expect this human capital management company to report a profit of $2.22 per share, up 6.2% from $2.09 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street’s earnings estimates in each of the last four quarters. In Q1, ADP’s EPS of $3.06 outpaced the forecasted figure by 3.4%.
For fiscal 2025, analysts expect ADP to report a profit of $9.96 per share, up 8.5% from $9.18 per share in fiscal 2024. Furthermore, its EPS is expected to grow 9.6% year-over-year to $10.92 in fiscal 2026.
Shares of ADP have rallied 30.6% over the past 52 weeks, considerably outpacing both the S&P 500 Index's ($SPX) 11.5% uptick and the Technology Select Sector SPDR Fund’s (XLK) 8.1% return over the same time frame.
On Apr. 30, shares of ADP surged 1.6% after its better-than-expected Q3 earnings release. The company’s revenue improved 5.7% year-over-year to $5.6 billion and topped the consensus estimates by 1.1% due to higher sales across all of its reportable segments. Moreover, its adjusted EPS of $3.06 advanced 6.3% from the same period last year, surpassing Wall Street expectations by 3.4%. Additionally, ADP raised its fiscal 2025 adjusted EPS growth guidance, and now expects it to grow between 8% to 9% from fiscal 2024.
Wall Street analysts are cautious about ADP’s stock, with a "Hold" rating overall. Among 16 analysts covering the stock, four recommend "Strong Buy," 11 indicate "Hold," and one advises a "Strong Sell” rating. The mean price target for ADP is $318.25, which indicates a 4.1% potential upside from the current levels.
