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In a remarkable display of market confidence, shares of Automatic Data Processing (ADP) have surged to an all-time high, touching a price level of $315.37. According to InvestingPro analysis, the company currently appears overvalued compared to its Fair Value, with a high P/E ratio of 32.27. This milestone underscores the company’s robust performance and investor optimism in its growth prospects. Over the past year, ADP has delivered an impressive 26.46% total return, while maintaining strong fundamentals with a 48.23% gross profit margin and a 52-year track record of consistent dividend payments. The company’s ascent to this record high is a testament to its sustained momentum in the competitive payroll and human resources solutions sector. With revenue growth of 7.09% and an "GOOD" overall financial health rating from InvestingPro, ADP continues to demonstrate its market leadership. Discover 16 additional exclusive insights about ADP with an InvestingPro subscription, including detailed valuation analysis and growth projections.
In other recent news, Automatic Data Processing Inc. (NASDAQ:ADP) reported its second-quarter fiscal 2025 earnings, showcasing an 8% revenue growth year-over-year, with earnings per share (EPS) increasing by 10%, surpassing analyst expectations. The company’s revenue reached $5.05 billion, exceeding forecasts set at $4.97 billion, and adjusted EPS was reported at $2.35, slightly above the projected $2.30. ADP’s Employer Services segment achieved record new business bookings, contributing to its robust performance. The company maintained its full-year guidance, projecting consolidated revenue growth of 6-7% and adjusted EPS growth of 7-9%, despite anticipating some softness in Q3 due to foreign exchange headwinds and integration expenses related to recent acquisitions.
ADP also announced a strategic partnership with Fiserv (NYSE:FI), aiming to integrate Fiserv’s Clover point-of-sale platform with ADP’s small business payroll solution, Run. The acquisition of Workforce Software (ETR:SOWGn) is progressing as planned, enhancing ADP’s product offerings and market position. Additionally, ADP was recognized by Fortune Magazine as one of the world’s most admired companies for the 19th consecutive year. These developments reflect ADP’s strategic focus and continued growth in the HR technology market.
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