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What Awaits Automatic Data Processing (ADP) in Q1 Earnings?

Zacks Equity Research
·3 min read

Automatic Data Processing, Inc. ADP is scheduled to report first-quarter fiscal 2021 results on Oct 28, before market open.

Let’s check out how things have shaped up for this announcement.

Expectations This Time Around

The Zacks Consensus Estimate for revenues stands at $3.30 billion, indicating a decline of 5.7% from the year-ago quarter’s reported figure. The top line is likely to have been weighed down by business losses, decrease in interest earned on funds held for clients and unfavorable impact of foreign-currency movements. These were, however, partially offset by new business started from New Business Bookings.

The consensus estimate for earnings stands at 97 cents, implying a year-over-year decline of 27.6%. The bottom line is expected to have been weighed down by decline in revenues combined with ADP's continued investment in sales, services and products. These were, however, partially offset by prudent expense management and cost savings related to transformation initiatives

What Our Model Says

Our 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’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Automatic Data Processing has an Earnings ESP of -0.28% and a Zacks Rank #3.

Automatic Data Processing, Inc. Price and EPS Surprise

 

Automatic Data Processing, Inc. Price and EPS Surprise
Automatic Data Processing, Inc. Price and EPS Surprise

Automatic Data Processing, Inc. price-eps-surprise | Automatic Data Processing, Inc. Quote

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on third-quarter 2020 earnings.

Aptiv APTV has an Earnings ESP of +13.04% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

CoreLogic CLGX has an Earnings ESP of +8.18% and a Zacks Rank #3.

Waste Connections WCN has an Earnings ESP of +0.32% and a Zacks Rank #3.

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Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
 
CoreLogic, Inc. (CLGX) : Free Stock Analysis Report
 
Waste Connections, Inc. (WCN) : Free Stock Analysis Report
 
Aptiv PLC (APTV) : Free Stock Analysis Report
 
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