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S&P 500 (NYSE:SPY) component Automatic Data Processing Inc. (NASDAQ:ADP) reported its results for the first quarter. Automatic Data Processing offers human resource, payroll, tax, and benefits administration solutions to a wide range of clients.
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Automatic Data Processing Inc. Earnings Cheat Sheet
Results: Net income for the outsourcing rose to $305.3 million (62 cents per share) vs. $302.7 million (61 cents per share) in the same quarter a year earlier. This marks a rise of 0.9% from the year-earlier quarter.
Revenue: Rose 5% to $2.64 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Automatic Data Processing Inc. fell in line with the mean analyst estimate of 62 cents per share. It fell short of the average revenue estimate of $2.92 billion.
Quoting Management: Commenting on the results, Mr. Rodriguez said, “ADP’s first quarter results were in-line with our expectations. Each of our business segments performed very well driving solid revenue growth and pretax margin expansion excluding acquisitions. I am particularly pleased with the 15% worldwide new business sales growth in Employer Services and PEO Services where strong sales execution and gains in productivity continued. We also saw continued strength in growth in the number of employees on our clients’ payrolls, and client revenue retention is solid, even though down from a year ago.”
The company has now seen its net income increase for three consecutive quarters. In the fourth quarter of the last fiscal year, net income rose 6.9% and in the third quarter of the last fiscal year, the figure rose 6.7%.
The company has met estiamtes for the last two quarters. It reported net income of 53 cents in the fourth quarter of the last fiscal year.
Looking Forward: Expectations for the second quarter have not changed from 72 cents. For the fiscal year, the average estimate has been unchanged at $2.93 a share.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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