ADP Touts 'Incredibly' Strong Business Bookings, Sets Optimistic Outlook for 2024

Automatic Data Processing, Inc ADP reported fourth-quarter (Q4) 2023 revenue growth of 8% year-on-year to $4.48 billion, beating the consensus of $4.39 billion.

Employer services revenue rose 11% year-over-year to $3.02 billion, and PEO services revenue grew 4% Y/Y to $1.46 billion.

Non-GAAP EPS of $1.89 beat the consensus of $1.83.

See Also: US Stock Futures Signal Shaky Open On Mixed Tech Earnings - Analyst Expects Fed To Adopt 'Wait-And-See' Rate Approach

Adjusted EBIT margin expanded by 270 bps to 22.5%. ADP held $2.08 billion in cash and equivalents.

"New business bookings were incredibly strong, and Employer Services retention returned to a record level, underscoring our strong market position," ADP CEO Maria Black said. "As we look ahead, we are focused on expanding on our leadership with a simple set of priorities across our business — leading with best-in-class HCM technology, providing unmatched expertise and outsourcing solutions, and leveraging our global scale and reach to benefit our clients." 

2024 Outlook: ADP expects revenue of $19.09 billion — $19.27 billion (consensus $18.97 billion), up by 6% - 7% Y/Y, and an adjusted EPS of $9.05 — $9.22 (consensus $8.92), up by 10% — 12%.

Price Action: ADP shares traded higher by 0.63% at $242.00 premarket on the last check Wednesday.

Now Read: 3M, M&T Bank, Live Nation Entertainment And A Major Semiconductor Company - CNBC's 'Final Trades'