Automatic Data Processing Earnings Preview: Revenue, Earnings Expected to Fall from Previous Quarter

Automatic Data Processing (NASDAQ: ADP) releases its next round of earnings this Thursday, July 28, 2011. Get prepared with Benzinga's ultimate preview for Automatic Data Processing's fourth quarter earnings.

Earnings and Revenue:

Analysts are looking ahead to a positive EPS of 48 cents per share and revenues of $2.44 billion. Investors will be keen to see how this quarter's numbers stack up against the year-ago quarter's positive EPS of 42 cents per share on revenues of $2.19 billion. We'll have to wait for Thursday to see if Automatic Data Processing has accomplished the estimated 14.3% rise in EPS and 11.4% increase in revenues on a year-over-year basis.

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

Stock Performance:

At last check, shares of Automatic Data Processing were trading at $53.23. Since January 1st, shares of Automatic Data Processing have given investors a return of 16.6%. For a full 12 months, the return has risen by 29.5%. 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 for Automatic Data Processing is a Hold. This rating has strengthened slightly over the past ninety days.

Competitors:

Wondering how some of the other information technology companies are doing? Here are a few of Automatic Data Processing's peers in that sector.

• Rockwell Collins (NYSE: COL): Moderate Buy with a $1.01 recent quarter EPS
• Equifax (NYSE: EFX): Hold with a $0.58 recent quarter EPS
• MAXIMUS (NYSE: MMS): Strong Buy with a $0.54 recent quarter EPS
• Insperity (NYSE: NSP): Hold with a $0.33 recent quarter EPS

Automatic Data Processing is in the outsourcing industry, which has experienced price/earnings growth of 6.4%.

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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