It has been about a month since the last earnings report for Automatic Data Processing (ADP) . Shares have added about 4.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is ADP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. ADP's Q4 Earnings Beat EstimatesAutomatic ...

Automatic Data Processing, Inc. (ADP) has had an impressive run over the year-to-date period. The stock has gained 19.3% compared with the 14.4% rally of the industry it belongs to and the 19% rise of the Zacks S&P 500 composite in the said period.YTD Price Perfomance Image Source: Zacks Investment Research ADP has reported an impressive fourth-quarter fiscal 2024. Earnings per share of $2.1 beat the consensus estimate by 1% and increased 10.6% from the year-ago quarter. Total revenues of $4.8 billion surpa ...

Investors looking for stocks in the Outsourcing sector might want to consider either Genpact (G) or Automatic Data Processing (ADP) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies wit ...

ROSELAND, N.J., Aug. 7, 2024 /PRNewswire/ -- The board of directors of Automatic Data Processing, Inc. (Nasdaq: ADP) has declared a regular quarterly dividend of $1.40 per share payable October 1, 2024 to shareholders of record on September 13, 2024.About ADP (NASDAQ – ADP)Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential.  HR, Talent, Time Management, Benefits and Payroll.  Informed by data and designed ...

Compliance and Regulatory Risks - The company faces significant risks related to compliance with U.S. and foreign laws, which could adversely affect its reputation and financial condition[84]. - Changes in regulations could decrease revenues and earnings, impacting average client balances and interest income[85]. - The company is subject to anti-money laundering laws and regulations, which require the implementation of risk-based programs and could result in penalties for non-compliance[89]. - Compliance with privacy and data protection laws, such as GDPR, may incur significant costs and require amendments to business practices[94]. - The company has implemented policies to monitor compliance with various laws, but there is no assurance that these measures will be sufficient to prevent violations[90]. - The company is subject to various legal and compliance risks, including potential penalties for failure to comply with regulations, which could adversely affect financial condition[84]. - Changes in laws or regulations may impact revenues and earnings, particularly in relation to tax laws and co-employment arrangements[85]. - The company faces increasing scrutiny regarding its environmental, social, and governance (ESG) initiatives, which may result in legal and regulatory uncertainty and increased compliance costs[112]. - The company’s ability to achieve ESG targets may depend on governmental actions and evolving regulations, which could impact its reputation and business operations[112]. Cybersecurity and Data Protection - The company collects and processes large amounts of personal and business information, making it vulnerable to security breaches that could disrupt operations and damage reputation[97]. - The company is facing increasing cybersecurity threats, including unauthorized intrusions and ransomware attacks, which could materially affect its operations and financial condition[101]. - Significant resources are being invested to enhance cybersecurity controls and address vulnerabilities, with potential for additional investments required[100]. - The company maintains insurance coverage for data and cyber risks, but it may be insufficient to cover all potential losses[103]. - The company has implemented a cybersecurity program that includes technical safeguards, incident management, and external assessments to protect client data and funds[117]. - Cybersecurity incidents could result in loss or misuse of confidential information, adversely impacting client confidence and business operations[101]. - The company has established a global, integrated business resiliency program to manage technological, environmental, process, and health risks on service delivery[120]. - Cybersecurity risks are integrated into the enterprise risk management program, which includes an annual assessment to identify and mitigate various risks[122]. - The chief information security officer (CISO) leads the global cybersecurity program, reporting to the chief security officer (CSO) who oversees multiple security-related areas[125]. - The board of directors and audit committee receive quarterly reports on the status of cybersecurity systems and emerging threats, ensuring active oversight[126]. - The company maintains a continuous security awareness and training program, requiring all associates to complete an annual interactive security training[121]. - An annual third-party assessment of the global cybersecurity program is conducted, with findings reported to the board for continuous improvement initiatives[126]. Business Operations and Transformation - The company is undertaking transformation initiatives aimed at streamlining operations, enhancing distribution, and improving talent and culture to support revenue growth and margin improvement[109]. - The company may not realize expected benefits from business transformation initiatives, potentially leading to adverse effects on operations and financial condition[106]. - The demand for the company's solutions may diminish if it fails to meet changing client needs and preferences[105]. - The company is dependent on large banks for executing electronic payments, and a systemic banking shutdown could impede its ability to process client funds[111]. - The company has contingency plans for bank failures, but significant disruptions could still affect its ability to process payroll and tax services[111]. - The company derives a significant portion of its revenues and operating income outside the United States, exposing it to market risks from changes in foreign currency exchange rates[111]. - The company has strong investment-grade long-term debt ratings, and failure to maintain these ratings could increase borrowing costs and adversely impact operations[113]. - The company may experience adverse impacts on financial results and liquidity due to potential delays in recovering client funds during financial disruptions[110]. - The company has made substantial investments in product development and new technologies, but the return on these investments may take time to materialize[105]. Intellectual Property and Competition - Intellectual property rights are critical for the company's competitive position, and failure to protect these rights could adversely affect its business[95]. - The potential for litigation related to intellectual property claims could result in significant expenses and operational disruptions[96]. - The company relies on intellectual property protections, and failure to safeguard these rights could adversely impact its competitive position and financial condition[95]. - The company is focused on attracting and retaining skilled personnel, as competition for talent in the outsourcing market is intensifying[114]. - The company is facing intense competition for skilled employees, which may impact its ability to attract and retain qualified personnel[114]. Technological Changes and Risks - The operating environment is subject to rapid technological changes, particularly due to AI, which necessitates continuous upgrades and enhancements to technology and services[105]. - The company is increasingly leveraging AI and machine learning in its solutions, but faces potential regulatory constraints and risks related to accuracy and bias[92]. - Disruptions in data centers or cloud-computing services could lead to financial losses and damage to reputation[104]. - The company has a global business resiliency program in place to mitigate risks from various events, but the effectiveness of these plans may not be guaranteed[103]. - The company engages in both internal and external assessments of its technology and security controls multiple times a year to benchmark against industry practices[119].

Automatic Data Processing (ADP) delivered robust results in the fourth quarter of fiscal 2024, driven by broad-based strengths in employer services with exceptional new business bookings, better-than-expected retention and stable pay-per-control growth. ADP's earnings per share of $2.1 surpassed the consensus mark by 1%. It increased 10.6% on a year-over-year basis. The company's revenues of $4.8 billion surpassed the Zacks Consensus Estimate by a slight margin. The top line gained 6.5% from the year-ago qu ...

For Immediate ReleaseChicago, IL – August 6, 2024 – Today, Zacks Equity Research discusses Automatic Data Processing, Inc. (ADP) , The Brink's Company (BCO) and Barrett Business Services, Inc. (BBSI) .Industry: OutsourcingLink: https://www.zacks.com/commentary/2316257/heres-3-outsourcing-stocks-to-consider-amid-industry-woesThe Zacks Outsourcing industry has experienced significant growth, driven by various economic, technological and business factors. Key drivers include the pursuit of cost savings, access ...

AndreyPopov Automatic Data Processing (NASDAQ:ADP) is a company that fits squarely into Peter Lynch's definition of Stalwarts: companies that grow earnings reliably at 10-12% a year and "are good friends in a crisis". The company has an extraordinary track record of value creation over many decades and I explain below why I think they can continue to grow revenue and earnings over the coming years and maintain pre-eminence within their industry. But I think the market is currently valuing ADP fairly, or per ...

You can see it in the pre-market charts: once the Employment Situation numbers for July hit the tape, three of the four major indices fell like a stone. Only the blue-chip Dow, still -0.74% points at this hour, has remained on the table. The S&P 500 is -1.77%, the Nasdaq -2.44% and the Russell 2000 -4.26% at this hour.Fingers Pointing Fed Chair Powell’s DirectionJust as analysts warned months ahead of time that the Fed needed to start raising interest rates as inflation was clearly hitting the economy, thos ...

Investing in dividend stocks for passive income has long been a desired strategy for income-focused investors. These companies often have decades of experience returning cash to shareholders by distributing a portion of their profits. They can hail from a wide range of sectors including financials, consumer discretionary, and information technology. When analyzing the stocks, investors should prioritize companies with stable cash flows, earnings and a relatively low payout ratio.Additionally, more advanced ...