Welcome to our dedicated page for Automatic Data Processing news (Ticker: ADP), a resource for investors and traders seeking the latest updates and insights on Automatic Data Processing stock.
Automatic Data Processing, Inc. (ADP) is a premier provider of comprehensive human resources management software and services headquartered in Roseland, New Jersey. Established in 1949, ADP serves over 1 million clients globally, primarily based in the United States. ADP’s services encompass payroll, human capital management (HCM) solutions, HR outsourcing, insurance, and retirement services.
ADP is organized into two main segments: Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers payroll and HCM solutions, HR outsourcing, insurance, and retirement services. The PEO segment, which is smaller but rapidly growing, provides HR outsourcing solutions to small and midsize businesses through a co-employment model.
In recent advancements, ADP has unveiled ADP Assist, a cutting-edge AI-driven solution that transforms work data into actionable insights, enhancing productivity and decision-making for HR professionals. The solution boasts a conversational interface that simplifies HR tasks, boosting overall workforce efficiency.
ADP’s latest technological innovations are driven by its extensive and unique dataset, which spans over 1 million clients across 140 countries, covering 41 million wage earners globally. This vast dataset is integral in training ADP's AI systems, ensuring precise and actionable insights are delivered to clients, aiding smart decision-making.
Furthering their commitment to innovation, ADP’s Marketplace has evolved to become the world’s largest digital HR storefront. Now incorporating AI-enabled partner solutions, ADP Marketplace offers clients enhanced ease and confidence in selecting solutions that best meet their HR needs.
ADP's financial health remains robust, as evidenced by their recent quarterly results and consistent job growth data from their National Employment Report. With a keen focus on secure and ethical data use, ADP ensures client data privacy and compliance, underpinning their trustworthiness in the market.
Learn more about ADP's advanced HCM solutions and the latest developments at ADP.com.
According to the November ADP National Employment Report, private sector employment rose by 127,000 jobs, marking a slowdown in job creation. Annual pay increased by 7.6% year-over-year. The construction and manufacturing sectors faced declines, while consumer-facing sectors like health care and hospitality experienced growth. Job changers saw a 15.1% pay increase, while job stayers experienced a 7.6% rise. The report highlights regional and establishment size disparities in employment changes.
ADP has enhanced its Wisely® payment platform with features like Earned Wage Access (EWA) to assist employees in managing finances and help employers attract talent. The platform enables secure digital accounts that integrate various income sources and offers tools like Bill Pay, Savings Envelopes (over $1.3B saved), Cash Back Rewards, and mobile wallet access. The update reflects a focus on digital financial wellness, as 91% of millennials consider EWA vital for employers. By integrating with payroll systems, Wisely aims to streamline payments and improve efficiency for employers.
On Nov. 9, 2022, ADP (Nasdaq: ADP) announced that its board of directors has authorized a new $5 billion stock repurchase program. This authorization replaces the previous 2019 program of the same amount. As of October 28, 2022, ADP had approximately 415 million shares outstanding. The initiative aims to enhance shareholder value by reducing the number of shares in circulation.
ADP's board approved a $0.21 increase in its quarterly cash dividend, raising it to an annual rate of $5.00 per share. This marks the 48th consecutive year of dividend increases, signifying the company's commitment to shareholder value. The new dividend of $1.25 per share will be distributed on January 1, 2023, for shareholders on record as of December 9, 2022.
CEO Carlos Rodriguez highlighted this increase as a reflection of ADP's shareholder-friendly approach.
In October, private sector employment rose by 239,000 jobs, surpassing the previous month's revised figure of 192,000. Annual pay increased by 7.7%, consistent with recent months. The report highlights sector-specific employment changes, with goods-producing industries showing a decline of 8,000 jobs, while service-providing sectors saw an increase of 247,000 jobs. Notably, the West region added 229,000 jobs. However, job changers experienced a drop in pay growth, indicating potential economic strain in sensitive sectors.
ADP announced the appointment of Maria Black as its new CEO, effective January 1, 2023, succeeding Carlos Rodriguez, who will transition to Executive Chair of the Board. Black, currently president, has over two decades of experience at ADP, including leadership roles in sales and marketing. Rodriguez has led the company since November 2011, overseeing significant growth and innovation. The Board expressed confidence in Black's ability to continue ADP's success and respond to clients' needs.
ADP (Nasdaq: ADP) reported its first quarter fiscal 2023 financial results on October 26, 2022. The company provided a revised fiscal 2023 outlook and announced a conference call for financial analysts. During the call, ADP expects to discuss supplementary financial information, including quarterly and full-year segment revenues for fiscal years 2021, 2022, and 2023. Investors can access all relevant information on ADP's investor relations website. This event highlights ADP's commitment to transparency and engagement with its shareholders.
ADP's September National Employment Report reveals a strong private sector job increase of 208,000 jobs, up from 185,000 in August, alongside a 7.8% year-over-year growth in annual pay. Notably, job growth is below the three-month average, and job changers experienced a decline in pay growth to 15.7%. The report shows significant job creation across service-providing sectors, with the South leading with 89,000 jobs. While the labor market remains stable, annual pay growth for job changers has slowed, marking a significant change in trends.
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