Automatic Data Processing Earnings Preview: Analysts Expect Higher EPS, Revenue

Automatic Data Processing (NASDAQ: ADP) releases its next round of earnings this Wednesday, October 26, 2011. Get the latest predictions in Benzinga's essential guide to the company's first quarter earnings report.

Earnings and Revenue:

Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of 61 cents/share and revenues of $2.44 billion. Automatic Data Processing's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 56 cents/share on revenues of $2.23 billion. Can the company manage the estimated 8.9% rise in EPS and 9.4% increase in revenues from the year-ago quarter as analysts are predicting? We'll have to wait until Wednesday to find out.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of Automatic Data Processing were trading at $52.07 as of October 25, 2011. Since January 1st, shares have given investors a return of 14.9%. For a full 12 months, the return has risen by 20%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts is a Hold. The strength of this rating has crept upwards over the past three months.

Competitors:

Want to check out the performance of Automatic Data Processing closest competitors? Take a look at some of the company's peers in the information technology sector.

• CBIZ (NYSE: CBZ): Moderate Buy with a $0.14 recent quarter EPS
• Rockwell Collins (NYSE: COL): Moderate Buy with a $1.01 recent quarter EPS
• Equifax (NYSE: EFX): Hold with a $0.61 recent quarter EPS
• MAXIMUS (NYSE: MMS): Strong Buy with a $0.56 recent quarter EPS

Automatic Data Processing is in the outsourcing industry, which has experienced price/earnings contraction of 0.2%.

Finally, a description of the company's main areas of operation: Automatic Data Processing offers human resource, payroll, tax, and benefits administration solutions to a wide range of clients.

Take Action:

That's your advanced look at Automatic Data Processing's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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