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ADP’s Q4 Earnings Match Expectations, but 2013 Forecast Looks Tepid (ADP)

By Dividend.com,  August 01, 2012, 09:07:45 AM EDT

Business outsourcing giant Automatic Data Processing ( ADP ) on Wednesday posted in-line fiscal fourth quarter earnings results, but its 2013 outlook could miss Wall Street's view.

The Roseland, NJ-based company reported fiscal fourth quarter net income of $258.4 million, or 53 cents per share, compared with $241.8 million, or 48 cents per share, in the year-ago period.

Revenue rose 5.2% from last year to $2.64 billion.

On average, Wall Street analysts expected a matching profit of 53 cents per share, albeit on slightly higher revenue of $2.66 billion.

Looking ahead, ADP said it expects fiscal 2013 earnings to rise between 5% and 7%, on revenue growth of 5% to 7%. Analysts currently expect 9% EPS growth and 8% revenue growth.

ADP shares fell 55 cents, or -1%, in premarket trading Wednesday.

The Bottom Line
Shares of Automatic Data Processing ( ADP ) have a 2.79% dividend yield, based on last night's closing stock price of $56.55. The stock has technical support in the $52 price area. If the shares can firm up, we see overhead resistance around the $59-$60 price levels.

Automatic Data Processing ( ADP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: ADP



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