TSC Ratings' Updates: McMoran

The following ratings changes were generated on Thursday, Jan. 22.

We've upgraded Automatic Data Processing(ADP Quote), which provides technology-based outsourcing solutions to employers, vehicle retailers and manufacturers, from hold to buy, driven by its revenue growth, impressive record of earnings per share growth, notable return on equity, reasonable valuation levels and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses that are likely to detract from the generally positive outlook.

Revenue increased by 9.5% since the year-ago quarter, and earnings per share are up 20%. The company has demonstrated a pattern of positive EPS growth over the past two years, and we feel that this trend should continue. Return on equity has improved slightly when compared with the same quarter one year prior, which can be construed as a modest strength in the organization. Net operating cash flow has increased to $398.20 million, or 44% when compared with the same quarter last year. ...