What Awaits Automatic Data Processing (ADP) In Q1 Earnings?
Zacks Investment Research | Oct 28, 2019 12:00AM ET
Automatic Data Processing, Inc. (NASDAQ:ADP) is scheduled to report first-quarter fiscal 2020 results on Oct 30, before market open.
So far this year, shares of ADP have gained 23.6% compared with 24.3% growth of the industry it belongs to and 19.4% increase of the Zacks S&P 500 composite.
Let’s check out how things are shaping up for the announcement.
Top Line Likely to Improve Year Over Year
Contribution from acquisitions, continued strong retention and new business started from Employer Services New Business Bookings are likely to have partially offset the unfavorable impact from foreign currency movements. This is expected to get reflected in ADP’s first-quarter fiscal 2020 revenues, the Zacks Consensus Estimate for which stands at $3.51 billion, indicating growth of 5.6% from the year-ago quarter reported figure. In fourth-quarter fiscal 2019, total revenues of $3.49 billion increased 6% year over year.
Going by segments, the consensus mark for Employer Services segment revenues stands at $2.46 billion, indicating an increase of 5.4% from the year-ago period reported figure. Contributions from new business started from New Business Bookings, solid retention, acquisitions and interest earned on funds held for clients are likely to have partially offset the unfavorable impact from foreign currency movements.
The consensus estimate for PEO Services revenues is pegged at $1.08 billion, indicating year-over-year growth of 9.3%. The segment is likely to have been driven by increase in the average number of worksite employees.
Automatic Data Processing, Inc. Revenue (TTM)
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