By Melodie Warner
Automatic Data Processing Inc.'s (ADP) fiscal first-quarter
earnings rose 0.9% as the payroll-service provider's revenue edged
out Wall Street's expectations.
The company also backed its full-year guidance.
"I am cautious as economic growth is still lagging historic
levels," said President and Chief Executive Carlos A. Rodriguez.
"However, I am pleased with the momentum in our businesses and I am
confident that ADP is well positioned to navigate the uncertainty
of the global economy."
Recognized for its stamp on worker paychecks, ADP's business
stretches from payroll management to employee benefits
administration and the outsourcing of human resources tasks. The
company has seen improving profits for over a year as smaller firms
that lack a formal head of human resources seek extra help with
compliance duties.
For the quarter ended Sept. 30, ADP reported a profit of $305.3
million, or 63 cents a share, up from $302.7 million, or 61 cents,
a year earlier. Earnings from continuing operations were 62 cents a
share in the most recent quarter. Revenue jumped 5% to $2.64
billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of 62 cents a share on revenue of $2.63 billion.
For the latest period, the company said new-business sales for
employer services and professional employer organizations
services--a key metric for ADP--jumped 15% from a year earlier.
Revenue at the employer-services segment, by far its biggest by
sales, rose 6.4% to $1.82 billion. The number of employees on ADP's
clients' payrolls in the U.S. rose 3.3% during the period.
Shares closed Wednesday at $57.79 and were inactive premarket.
The stock is up 7% so far this year.
Write to Melodie Warner at melodie.warner@dowjones.com
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