Automatic Data Processing (ADP) is likely to post a modest fiscal Q3 beat and maintain its guidance for fiscal 2025, RBC Capital Markets said in a note emailed Thursday.

The firm said it expected fiscal Q3 adjusted earnings of $3.03 per share, above the consensus estimate of $2.95. RBC is also forecasting total revenue growth of 4.9% year over year to $5.51 billion, also above the consensus estimate of $5.49 billion.

"Our estimates factor in some effect regarding the near-term macro uncertainty," RBC said in the note.

The firm expects ADP to discuss tariffs during its fiscal Q3 earnings call despite the lack of any impact during the quarter. Instead, the company's focus would be on a potential impact in fiscal Q4 and fiscal 2026, including a further slowdown in pays per control and continued investments, RBC said.

The firm has a sector perform rating on the stock with a price target of $315.

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