Automatic Data Processing Second Quarter 2023 Earnings: In Line With Expectations
Automatic Data Processing (NASDAQ:ADP) Second Quarter 2023 Results
Key Financial Results
Revenue: US$4.39b (up 9.1% from 2Q 2022).
Net income: US$813.1m (up 17% from 2Q 2022).
Profit margin: 19% (up from 17% in 2Q 2022). The increase in margin was driven by higher revenue.
EPS: US$1.96 (up from US$1.65 in 2Q 2022).
All figures shown in the chart above are for the trailing 12 month (TTM) period
Automatic Data Processing Meets Expectations
Revenue was in line with analyst estimates. Earnings per share (EPS) was also in line with analyst expectations.
Looking ahead, revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 10% growth forecast for the IT industry in the US.
Performance of the American IT industry.
The company's shares are down 5.0% from a week ago.
You should always think about risks. Case in point, we've spotted 1 warning sign for Automatic Data Processing you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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