AUTOMATIC DATA PROCESSING Reports Fourth Quarter Earnings for Fiscal Year 2023

🌥️Earnings Overview

AUTOMATIC DATA PROCESSING ($NASDAQ:ADP) revealed their financial figures for the fourth quarter of 2023, which came to a close on June 30 2023. The company saw a 6.0% rise in total revenue to USD 4242.1 million and a 24.2% jump in net income to USD 776.7 million on a year-over-year basis.

Market Price

On Wednesday, AUTOMATIC DATA PROCESSING (ADP) reported record fourth quarter earnings for fiscal year 2023. Shares of the company opened at $244.0 and closed at $253.4, representing a 5.4% rise from the previous closing price of $240.5. This marks a notable improvement on the previous quarter’s results. Overall, ADP’s earnings have been strong throughout the year, with consistent gains in revenue and profits. The company has attributed its success to its focus on developing innovative technologies and providing customers with exceptional customer service. This has allowed ADP to remain competitive in a rapidly changing market.

Market analysts have expressed optimism about ADP’s progress in the fourth quarter of the fiscal year. The company’s success is expected to continue as it continues to invest in the latest technological developments and expand its customer base. Clearly, the results of the fourth quarter demonstrate that ADP is a company with strong fundamentals and a bright future ahead. Investors should take note of the company’s impressive performance and consider investing in the stock for potential long term returns. 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 fundamentals. After a thorough review, we gave the company a medium risk rating in both financial and business aspects. This assessment is based on several factors, such as its financial health, liquidity, profitability and debt levels. However, we also detected two risk warnings in AUTOMATIC DATA PROCESSING’s cashflow statement, which are non-financial. This means that there may be some hidden risks that are not immediately visible when looking at the company’s financials. If you’re interested in learning more about these risk warnings, please register on GoodWhale.com to check it out. 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 in Automatic Data Processing (ADP) have been rewarded with strong fourth quarter results for Fiscal Year 2023. Revenue of USD 4242.1 million was 6.0% higher year-over-year, and net income of USD 776.7 million was 24.2% higher year-over-year. This impressive performance was reflected in the stock price, which moved up the same day the earnings were announced. Investors may be encouraged by this positive news to consider ADP as a potential long-term investment opportunity.