Automatic Data Processing to Report Q1 Earnings: What's in Store?

Automatic Data Processing, Inc. ADP is scheduled to release its first-quarter fiscal 2025 results on Oct. 30, before market open.See Zacks Earnings Calendar to stay ahead of market-making news.ADP has an impressive earnings surprise history, surpassing the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 2.3%.Automatic Data Processing, Inc. Price and EPS Surprise  Automatic Data Processing, Inc. price-eps-surprise | Automatic Data Processing, Inc. QuoteAutomatic Data Processing’s Q1 ExpectationsThe Zacks Consensus Estimate for the top line is pegged at $4.8 billion, implying a 5.5% increase on a year-over-year basis.We expect the top line to have been fueled by impressive client funds interest, increasing new business bookings and customer retention.Our estimate for first-quarter fiscal 2025 revenues from Employer Service is $3.2 billion, suggesting 6.3% growth from the year-ago quarter’s actual. We anticipate better-than-expected contributions from client funds’ interests to have benefitted this segment’s revenues. We anticipate PEO services revenues to be $1.5 billion, hinting at  3.2% year-over-year growth. It is expected to have been driven by business booking growth and better client retention.Our expectation for Interest on Funds held for clients is $252 million, implying 24.9% growth from the year-ago quarter’s reported figure. Our estimate for Average Paid PEO Worksite Employees for the quarter is 734. Changes in Pay per control are anticipated to be 2% for the to-be-reported quarter.The consensus estimate for earnings per share is pegged at $2.2, indicating a year-over-year rise of 5.8%. A strong revenue performance is anticipated to have improved the bottom line.What Our Model Says About ADPOur proven model does not conclusively predict an earnings beat for Automatic Data Processing this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.ADP has an Earnings ESP of +1.67% and a Zacks Rank #4 (Sell).Stocks to ConsiderHere are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.Gartner IT: The Zacks Consensus Estimate for the company’s third-quarter 2024 revenues is pegged at $1.5 billion, indicating a year-over-year increase of 4.6%. For earnings, the consensus mark is pegged at $2.5 per share, suggesting a 4.3% decrease from that reported in the year-ago quarter. The company beat the Zacks Consensus Estimate in the past four quarters, with an average surprise of 17.4%.IT has an Earnings ESP of +10.44% and a Zacks Rank #2 at present. The company is scheduled to declare its third-quarter results on Nov. 5.You can see the complete list of today’s Zacks #1 Rank stocks here.MoneyLion ML: The Zacks Consensus Estimate for the company’s third-quarter 2024 revenues is pegged at $134.3 million, indicating year-over-year growth of 21.8%. For earnings, the consensus mark is pegged at 10 cents per share, implying more than 100% growth from the year-ago quarter’s actual. The company beat the Zacks Consensus Estimate in the past four quarters, the average surprise being 772.5%.ML has an Earnings ESP of +20.9% and a Zacks Rank #3 (Hold). The company is scheduled to declare its third-quarter results on Nov. 7.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report Gartner, Inc. (IT): Free Stock Analysis Report MoneyLion Inc. (ML): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks