NASDAQ$ADP

Automatic Data Processing Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported strong financial performance with revenue growth and margin expansion.

ADP reported a 7% increase in revenues to $4.5 billion and a 10% increase in net earnings to $859 million for the first quarter of fiscal year 2024. The company's adjusted EBIT increased by 7% to $1.1 billion, with adjusted diluted EPS increasing by 12% to $2.08. ADP is maintaining its fiscal 2024 outlook for revenue growth of 6% to 7% and adjusted diluted EPS growth of 10% to 12%.

  • Revenues increased 7% to $4.5 billion; 7% organic constant currency.
  • Net earnings increased 10% to $859 million, and adjusted net earnings increased 11% to $860 million.
  • Adjusted EBIT increased 7% to $1.1 billion, and adjusted EBIT margin increased 10 basis points to 24.2%.
  • Diluted earnings per share increased 11% to $2.08; adjusted diluted EPS increased 12% to $2.08.

Headline financials

Total Revenue

$4.51B

Previous: $4.22B+7.0%
EPS (adj)

$2.08

Previous: $1.86+11.8%
U.S. Pays Per Control

2.0%

Previous: 6.0%-66.7%
Average WSEs

717.0K

Previous: 704.0K+1.8%
Capital Expenditures

-$39.3M

Previous: -$45.4M+13.4%
Free Cash Flow

$820M

Previous: $734M+11.8%
Net Income

$859M

Previous: $779M+10.3%
Operating Income

-$5.54B

Previous: -$5.27B-5.1%
Gross Profit

$2B

Previous: $1.82B+9.6%
Cash & Equivalents

$1.44B

Previous: $1.21B+19.4%
Total Assets

$49.3B

Previous: $46.4B+6.4%
Stock-Based Comp

$58.8M

Previous: $50.6M+16.2%

Revenue & EPS history

ADP · Revenue · Quarterly

$4.51B

Q1 2024+7%vs Q1 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

ADP · $4.52B total across 2 segments · Q1 2024

  • Employer Services
    $3.05B+9.2%
  • PEO Services
    $1.47B+2.8%

Forward guidance

ADP maintains its fiscal 2024 consolidated outlook for revenue growth of 6% to 7%, adjusted EBIT margin expansion of 60 to 80 basis points, and adjusted diluted EPS growth of 10% to 12%.

Tailwinds

  • Revenue growth of 6% to 7%.
  • Adjusted EBIT margin expansion of 60 to 80 basis points.
  • Adjusted effective tax rate of about 23%.
  • Diluted EPS growth of 10% to 12%.
  • Adjusted diluted EPS growth of 10% to 12%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.1%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+2.6%

Avg return

30 days after

50%

35 / 70 earnings

Positive

+10.8%

Q4 2017

Best reaction

-9.4%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.0%+6.1%+11.4%
Q2 2026-1.2%-6.2%-14.5%
Q1 2026-6.6%-8.0%-8.7%
Q3 2025+1.6%+2.8%+10.1%
Q2 2025+0.8%+3.0%+5.7%
Q1 2025+0.4%+0.7%+6.6%
Q4 2024+1.4%+0.2%+7.0%
Q3 2024+0.1%+0.4%+1.3%
Q2 2024+3.6%+4.1%+4.7%
Q1 2024-9.0%-10.1%-4.1%
Q4 2023+4.3%+2.8%+5.2%
Q3 2023+2.1%+4.5%+0.4%
Q2 2023-5.7%-7.0%-7.3%
Q1 2023-1.2%+1.7%+11.0%
Q4 2022+9.9%+10.7%+14.9%
Q3 2022+3.3%-1.3%+1.1%
Q2 2022-9.4%-4.9%-5.8%
Q1 2022+1.9%+1.5%+4.9%
Q4 2021+0.5%+0.8%+0.5%
Q3 2021-3.8%-2.3%+0.1%
Q2 2021+1.3%+1.1%+5.8%
Q1 2021+8.3%+10.6%+20.0%
Q4 2020-9.4%-8.3%-3.6%
Q3 2020+2.6%+1.0%+2.4%
Q2 2020-1.8%-2.4%-13.2%
Q1 2020-0.4%-0.6%+4.9%
Q4 2019-0.4%-3.2%+2.9%
Q3 2019-3.6%-2.5%-2.6%
Q2 2019+4.4%+7.2%+14.9%
Q1 2019+2.7%+3.0%+7.4%
Q4 2018-1.4%+0.4%+8.7%
Q3 2018+3.6%+5.7%+11.7%
Q2 2018-0.3%-5.6%-6.0%
Q1 2018-2.7%-2.3%-1.4%
Q4 2017+10.8%+10.2%-1.3%
Q3 2017-4.7%-7.0%-2.9%
Q2 2017-4.6%-4.5%+3.5%
Q1 2017+2.8%+4.2%+9.6%
Q4 2016-6.3%-7.3%-5.4%
Q3 2016-1.9%
Q2 2016+0.8%
Q1 2016-2.2%
Q4 2015-3.1%
Q3 2015+0.7%
Q2 2015+2.4%
Q1 2015+2.2%
Q4 2014-0.7%
Q3 2014+0.8%
Q2 2014-1.0%
Q1 2014-1.7%
Q4 2013-0.7%
Q3 2013+1.9%
Q2 2013+2.0%
Q1 2013-0.7%
Q4 2012-1.4%
Q3 2012-1.6%
Q2 2012-1.6%
Q1 2012-0.7%
Q4 2011-0.7%
Q3 2011+0.7%
Q3 2010+0.7%
Q2 2011+0.1%
Q1 2011-0.7%
Q4 2008-0.2%
Q4 2010-0.2%
Q2 2009+0.7%
Q2 2010+0.7%
Q1 2009+1.7%
Q1 2010+1.7%
Q4 2009+1.7%

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