Company Of The Day: ADP

November 1st, 2022 by Trefis Team
-7.93%
Downside
304
Market
280
Trefis
ADP: Automatic Data Processing logo
ADP
Automatic Data Processing

What?

ADP (NASDAQ:ADP) posted a stronger-than-expected set of Q1 FY’23 results last week, with revenues rising almost 10% to $4.2 billion and adjusted diluted EPS standing at $1.86.

Why?

Relevant Articles
  1. What To Expect From ADP’s Q1 Results?
  2. What To Expect From ADP’s Q4 Earnings?
  3. Will ADP’s Strong Gains Of Recent Years Continue?
  4. What To Expect From ADP’s Q4 Results?
  5. What To Expect From ADP’s Q3 Results?
  6. With The Job Market Holding Up, What To Expect From ADP’s Q2 Earnings?

Growth was driven by strong demand for the company’s human capital management and HR outsourcing services.

So What?

ADP also raised its guidance for FY’23, projecting revenue growth of 8% to 9% up from a prior outlook of 7% to 9%, with EBIT margin expansion projected at 125 to 150 basis points. ADP stock has gained about 3% since earnings.

See Our Complete Analysis For ADP

What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.

Returns Nov 2022
MTD [1]		 2022
YTD [1]		 2017-22
Total [2]
 ADP Return 0% -2% 135%
 S&P 500 Return 0% -19% 73%
 Trefis Multi-Strategy Portfolio 6% -22% 208%

[1] Month-to-date and year-to-date as of 11/1/2022
[2] Cumulative total returns since the end of 2016

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