NASDAQ$ADP
Automatic Data Processing Inc · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
ADP's third quarter results reflected an improving demand environment and continued execution on its strategic plan, exceeding forecasts for revenue growth and margin performance.
ADP reported a 10% increase in revenues to $4.5 billion, a 15% increase in net earnings to $929 million, and a 17% increase in adjusted diluted EPS to $2.21. The company also raised its fiscal year 2022 guidance due to strong momentum across the business.
- Revenues increased 10% compared to last year's third quarter to $4.5 billion.
- Net earnings increased 15% to $929 million, and adjusted net earnings increased 15% to $930 million.
- Adjusted EBIT increased 12% to $1.2 billion, and adjusted EBIT margin increased 50 basis points to 26.8%.
- Diluted earnings per share increased 16% to $2.21, and adjusted diluted EPS increased 17% to $2.21.
Headline financials
Revenue & EPS history
ADP · Revenue · Quarterly
$4.51B
Revenue by segment
ADP · $4.52B total across 2 segments · Q3 2022
- Employer Services$3B+8.0%66.5%
- PEO Services$1.51B+14.3%33.5%
Forward guidance
ADP provided fiscal year 2022 outlook, including revenue growth of 9% to 10%, adjusted EBIT margin expansion of 75 to 100 basis points, and adjusted diluted EPS growth of 15% to 17%.
Tailwinds
- Revenue growth of 9% to 10%
- Adjusted EBIT margin expansion of 75 to 100 basis points
- Adjusted effective tax rate of approximately 22.5%
- Diluted EPS growth of 14% to 16%
- Adjusted diluted EPS growth of 15% to 17%
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 Q3 2022
-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
| Quarter | Report date | Reaction (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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