Movement Alert|Automatic Data Processing Rises 3.02% in Regular Trading, RBC Expects Modest Fiscal Q4 Beat

Market Focus07-13

On July 13, Automatic Data Processing rose 3.02% in regular trading, trading at $249.15/share, with turnover of $108 million. The move was driven by a bullish research note from RBC Capital Markets forecasting a modest earnings beat for the upcoming fiscal Q4 report.

RBC projected fiscal Q4 revenue of $5.46 billion, above the $5.44 billion consensus estimate, while earnings per share are expected to reach $2.62, ahead of the $2.59 Street estimate. The outlook is supported by stable client retention, 1% growth in revenue per payroll run, and bookings growth in the upper half of the company's 4% to 7% guidance range. RBC also expects ADP to issue fiscal 2027 revenue growth guidance of 5% to 6%, in line with consensus. The firm cited favorable year-over-year comparisons, a solid pipeline, and broad-based momentum across the business.

This follows ADP's strong fiscal Q3 results reported in late April, where revenue of $5.94 billion and adjusted EPS of $3.37 both beat estimates, prompting the company to raise its full-year outlook. ADP is scheduled to report fiscal Q4 results on July 29.

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