- Earnings Per Share (EPS) is estimated at $2.96, marking a 2.8% increase year-over-year.
- Projected quarterly revenue of approximately $5.49 billion, a 4.6% increase from the previous year.
- Financial stability is indicated by a moderate debt-to-equity ratio of approximately 0.84 and a current ratio of about 1.18.
Automatic Data Processing, Inc. (NASDAQ:ADP) is a prominent player in the human resources and payroll services industry. The company provides a range of services, including payroll processing, tax and benefits administration, and human capital management solutions. ADP competes with other major firms like Paychex and Workday in delivering these essential services to businesses worldwide.
On April 30, 2025, ADP is set to release its quarterly earnings, with Wall Street analysts estimating an earnings per share (EPS) of $2.96. This figure represents a 2.8% increase from the same period last year. The stability in earnings estimates over the past month suggests confidence among analysts, as highlighted by the Zacks Consensus Estimate, which has remained unchanged.
ADP’s revenue for the quarter is projected to be approximately $5.49 billion, marking a 4.6% increase year-over-year. This growth is largely driven by the Employer Services segment, expected to generate $3.8 billion in revenue, reflecting a 5.4% increase from the previous year. The Professional Employer Organization (PEO) segment also contributes to the top-line improvement through robust business bookings.
The company’s financial metrics provide insight into its market valuation. ADP’s price-to-earnings (P/E) ratio is around 30.44, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 6.00, while the enterprise value to sales ratio is approximately 6.11. These figures reflect the market’s valuation of ADP’s sales and cash flow.
ADP maintains a moderate debt level, with a debt-to-equity ratio of approximately 0.84. This suggests a balanced approach to leveraging debt relative to equity. Additionally, the current ratio of about 1.18 indicates ADP’s ability to cover short-term liabilities with short-term assets, showcasing its financial stability.
