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Stock Analyst Update

ADP Kicks Off Solid First Quarter

Automatic Data Processing sees good results throughout the company.

Below is a selected Stock Analyst Note update for Monday, Oct. 25. Click here to see a list of all Notes available to Premium Membership subscribers.

 Automatic Data Processing ADP is off to a good start for 2005 after reporting solid first-quarter results Monday. We may bump up our $44 fair value estimate pending management’s comments on its call to discuss these results Monday afternoon. Results were good across all its major segments, with consolidated operating revenue growth of 8% and a relatively flat operating margin of 14%. The firm also raised its revenue guidance for the full year to incorporate 7%-8% growth, up from midsingle-digit growth previously.
Todd Lukasik, CFA

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