ADP Surpasses Earnings Expectations, Touts 7% Increase In Employer Services Revenue

Automatic Data Processing, Inc ADP reported fiscal fourth-quarter 2024 revenues of $4.77 billion, beating the analyst consensus estimate of $4.74 billion. Revenues increased 6% year-over-year. 

The human resources management software company reported quarterly adjusted EPS of $2.09, beating the analyst consensus estimate of $2.06.

• Employer Services revenues increased 7% to $3.22 billion.
• PEO Services revenues increased 6% to $1.55 billion.
• Adjusted EBIT increased 10% to $1.1 billion, and adjusted EBIT margin increased 80 bps to 23.3%.
• Net earnings increased 7% Y/Y to $829 million, and adjusted net earnings increased 10% Y/Y to $858 million. 
• ADP held $2.91 billion in cash and equivalents as of June 30.

"Employer Services new business bookings growth came in at the high-end of our expectations, and client satisfaction reached a new all-time high for the year,” ADP CEO Maria Black said. “These results reflect the power of our innovative human capital management (HCM) solutions and the collective efforts of our talented associates who deliver unmatched service for our clients each day.”

FY25 Outlook: ADP projected revenue growth outlook of 5%—6%, versus the consensus of $20.24 billion, and adjusted diluted EPS growth of 8%—10%, versus the consensus of $9.97.

Price Action: ADP shares are trading higher by 0.88% to $260.00 premarket at the last check Wednesday.

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