Automatic Data Processing Earnings Preview: Revenue, Earnings Expected to Fall from Previous Quarter

Automatic Data Processing ADP releases its next round of earnings this Thursday, July 28, 2011. Get prepared with Benzinga's ultimate preview for Automatic Data Processing's fourth quarter earnings.

Earnings and Revenue:

Analysts are looking ahead to a positive EPS of 48 cents per share and revenues of $2.44 billion. Investors will be keen to see how this quarter's numbers stack up against the year-ago quarter's positive EPS of 42 cents per share on revenues of $2.19 billion. We'll have to wait for Thursday to see if Automatic Data Processing has accomplished the estimated 14.3% rise in EPS and 11.4% increase in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

At last check, shares of Automatic Data Processing were trading at $53.23. Since January 1st, shares of Automatic Data Processing have given investors a return of 16.6%. For a full 12 months, the return has risen by 29.5%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Automatic Data Processing is a Hold. This rating has strengthened slightly over the past ninety days.

Competitors:

Wondering how some of the other information technology companies are doing? Here are a few of Automatic Data Processing's peers in that sector.

• Rockwell Collins COL: Moderate Buy with a $1.01 recent quarter EPS
• Equifax EFX: Hold with a $0.58 recent quarter EPS
• MAXIMUS MMS: Strong Buy with a $0.54 recent quarter EPS
• Insperity NSP: Hold with a $0.33 recent quarter EPS

Automatic Data Processing is in the outsourcing industry, which has experienced price/earnings growth of 6.4%.

Finally, a description of the company's main areas of operation: Automatic Data Processing offers human resource, payroll, tax and benefits administration solutions to a wide range of clients.

Take Action:

That's your advanced look at Automatic Data Processing's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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