By Chelsey Dulaney
Automatic Data Processing Inc. on Thursday edged down its
revenue forecast for the year amid foreign exchange impacts, but
said it expects its profit to come in at the top end of its
previous guidance.
The payroll and benefits-administration company said it now
expects its revenue to grow 7% for the year, compared with its
prior forecast for 7% to 8% growth. The company expects foreign
currency issues to bring down revenue by two percentage points.
Meanwhile, the company now expects its earnings from continuing
operations to grow 14%, compared with its prior forecast for 12% to
14% growth.
For its fiscal third quarter ended March 31, world-wide
new-business bookings, a key metric, grew 6%.
Revenue at the employer-services segment, the company's biggest
top-line contributor, grew 5% to $2.5 billion on a continuing
operations basis.
Professional-employer-organizations services revenue grew 15% to
$748.5 million.
Overall, the company reported a profit of $489.6 million, or
$1.03 a share, compared with $521.6 million, or $1.08 a share, a
year earlier. Per-share earnings from continuing operations were
$1.04.
Total revenue grew 7.3% to $3.03 billion.
Analysts polled by Thomson Reuters had predicted $1.02 a share
in earnings and $3.02 billion in revenue.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com
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