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.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceMoversTechTrading IdeasBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!