Business outsourcer Automatic Data Processing ( ADP
The Roseland, NJ-based company reported second quarter net income of $207.6 million, or 42 cents per share, compared with $352.8 million, or 70 cents per share, in the year-ago period.
Revenue rose 4% from last year, however, to $2.19 billion.
On average, Wall Street analysts expected a slightly larger profit of 43 cents per share, albeit on lower revenue of $2.14 billion.
ADP shares fell 50 cents, or -1.2%, in premarket trading Thursday.
The Bottom Line
We had removed shares of ADP from our "recommended" list back on Oct.6, 2008, when the stock was trading at $41.28. The company has a 3.23% dividend yield, based on last night's closing stock price of $42.10. The stock has technical support in the $39-$40 price area. If the shares can firm up, we see overhead resistance at the $44-$45 price levels. We would remain on the sidelines.
Automatic Data Processing ( ADP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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