Automatic Data Processing Shares Gain On Topping Q3 Backed By Improving Demand Environment

Automatic Data Processing, Inc ADP reported third-quarter FY22 revenue growth of 10% year-on-year to $4.51 billion, beating the consensus of $4.46 billion.
Employer services revenue rose 8% Y/Y to $3 billion, PEO services revenue grew 14% Y/Y to $1.51 billion.
Non-GAAP EPS of $2.21 beat the consensus of $2.08.
The adjusted EBIT margin expanded 50 bps to 26.8%.
ADP held $1.63 billion in cash and equivalents.
CFO Don McGuire said, "With considerable momentum in bookings, pays per control, PEO worksite employee growth, and Employer Services revenue retention, we are positioned for a strong finish to fiscal 2022, and we look forward to driving sustainable long-term growth."
2022 Outlook: ADP raised revenue outlook from $16.21 billion - $16.36 billion prior to $16.36 billion - $16.51 billion, above the consensus of $16.30 billion.
ADP increased its non-GAAP EPS outlook from $6.74 - $6.86 to $6.92 to $7.04, above the consensus of $6.83.
Price Action: ADP shares traded higher by 4.64% at $232.59 on the last check Wednesday.

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