AUTOMATIC DATA PROCESSING Reports Fourth Quarter Earnings for Fiscal Year 2023

🌥️Earnings Overview

On July 26, 2023, AUTOMATIC DATA PROCESSING ($NASDAQ:ADP) reported its earnings for the fourth quarter of Fiscal Year 2023, which ended on June 30, 2023. Total revenue for the quarter was USD 4242.1 million, a 6.0% rise from the preceding year. Additionally, net income for the quarter was USD 776.7 million, a 24.2% increase from the same time a year ago.

Share Price

The stock opened at $244.0 and closed at $253.4, representing a rise of 5.4% from its last closing price of $240.5. This marked a significant increase in the company’s stock price, demonstrating investor confidence in the company’s performance and outlook. Overall, these impressive results demonstrate that AUTOMATIC DATA PROCESSING has seen significant growth over the past year and is in a strong financial position heading into the next fiscal year. This is reflected in the rise of its stock, as investors have continued to show their confidence in the company’s performance. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for ADP. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for ADP. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for ADP. More…

Key Ratios Snapshot

Some of the financial key ratios for ADP are shown below. More…

Analysis

At GoodWhale, we recently conducted an analysis of AUTOMATIC DATA PROCESSING’s wellbeing. Based on our Risk Rating, AUTOMATIC DATA PROCESSING is a medium risk investment in terms of financial and business aspects. Additionally, we detected two risk warnings in its cashflow statement. To fully understand the potential risks involved in investing in AUTOMATIC DATA PROCESSING, it is important to dig deeper into the details of its financials, which can be found on GoodWhale.com. Our platform provides comprehensive research and analysis of both financial and non-financial aspects, making it easy to identify potential risks associated with a particular investment. With GoodWhale’s help, investors can make well-informed decisions and maximize their returns. More…

Peers

The competition in the payroll processing and human resources management industry is fierce. Automatic Data Processing Inc (ADP) is the largest player in the industry, with a market share of over 26%. Its closest competitors are Paychex Inc, Insperity Inc, and Trucept Inc, which have market shares of around 10%, 7%, and 6%, respectively. While all four companies offer similar services, ADP has a clear advantage in terms of size and scale.

– Paychex Inc ($NASDAQ:PAYX)

Paychex Inc is a human resource consulting and payroll processing company headquartered in Rochester, New York. As of May 2019, Paychex serves over 650,000 small and medium sized businesses. The company has a market cap of $40.17B as of 2022 and a Return on Equity of 38.35%. Paychex was founded in 1971 by B. Thomas Golisano and Robert C.risk.

– Insperity Inc ($NYSE:NSP)

Inspriety Inc is a business services provider located in the United States. The company offers a suite of human resources and business solutions designed to help businesses improve their productivity and bottom line. Inspriety’s services include payroll processing, benefits administration, and talent management. The company serves over 100,000 businesses of all sizes across the United States.

– Trucept Inc ($OTCPK:TREP)

Trucept Inc is a publicly traded company with a market capitalization of 221.15 thousand as of 2022. The company has a return on equity of 42.12%. Trucept Inc is a provider of cloud-based software solutions for small and medium-sized businesses. The company’s software solutions include accounting, human resources, customer relationship management, and e-commerce.

Summary

Investors have reason to be optimistic about Automatic Data Processing (ADP) following their fourth quarter earnings report for the fiscal year 2023. Total revenue for the quarter was up 6% to USD 4242.1 million, while net income saw an even larger increase of 24.2% to USD 776.7 million. This resulted in a positive reaction from the market, as the stock price moved up on the same day.

These results indicate that despite global economic uncertainties, ADP is well-positioned to continue delivering strong returns to its shareholders. Moving forward, investors will be keeping a close eye on the company’s future performance to access how much further upside remains in their stock.