NASDAQ$ADP
Automatic Data Processing Inc · Q4 2020 earnings
Q4 2020 earnings · · Investor relations
Briefing
ADP's Q4 2020 financial results were announced, revealing a revenue decrease of 3% to $3.4 billion and a net earnings decrease of 13% to $412 million compared to the previous year's fourth quarter. Adjusted diluted EPS was flat at $1.14.
ADP reported a decrease in revenues by 3% to $3.4 billion for the fourth quarter, with net earnings down by 13% to $412 million. The company's adjusted diluted EPS remained flat at $1.14. Despite challenges from the COVID-19 pandemic, ADP is focusing on strategic investments and cost management.
- Revenues decreased 3% to $3.4 billion; 2% organic constant currency.
- Net earnings decreased 13% to $412 million.
- Adjusted diluted EPS was flat at $1.14.
- Employer Services revenues decreased 6% while PEO Services revenues increased 4%.
Headline financials
Revenue & EPS history
ADP · Revenue · Quarterly
$3.38B
Revenue by segment
ADP · $3.38B total across 2 segments · Q4 2020
- Employer Services$2.3B-5.7%68.0%
- PEO Services$1.08B+3.8%32.0%
Forward guidance
ADP anticipates a revenue decline of 1% to 4% and an adjusted diluted EPS decline of 13% to 18% for fiscal year 2021, as the global economy continues to manage through the effects of COVID-19.
Tailwinds
- Employer Services New Business Bookings growth of flat to up 10%.
- Adjusted effective tax rate of 23.1%.
- PEO Services revenue decline of 2% to growth of 2%.
- Strategic investment in product and distribution to drive sustainable long-term growth.
- Client Funds Interest Revenue $390 - $400M
Headwinds
- Revenue decline of 1% to 4%.
- Adjusted EBIT margin down about 300 basis points.
- Diluted EPS decline of 12% to 17%.
- Employer Services revenue decline of 3% to 5%.
- Employer Services client revenue retention down 50 to 100 basis points.
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 Q4 2020
-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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