NEW YORK (TheStreet) -- Automatic Data Processing (ADP) - Get Report shares are up 0.78% to $77.86 on Wednesday on weak volume after the business outsourcing solutions provider reported its first quarter earnings results today.
The company reported first quarter earnings of 62 cents per diluted share, 6 cents less than it reported during the same period last year but 2 cents better than analysts were expecting this year.
Revenue during the period increased 9% over the previous year to $2.6 billion, ahead of analysts $2.55 billion estimates.
The company raised its full year EPS growth estimates to between 12% and 14%, from between 11% and 13%, for an expected EPS of between $2.89 and $2.94, in line with analysts' $2.93 per share estimates.
TheStreet Ratings team rates AUTOMATIC DATA PROCESSING as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AUTOMATIC DATA PROCESSING (ADP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: ADP Ratings Report