ADP Automatic Data Processing Inc

   By Tess Stynes 
 

Automatic Data Processing Inc.'s (ADP) earnings rose 9.5% in the latest quarter as the provider of payroll and benefits administration services continued to see stronger revenue.

Per-share earnings, excluding certain items, beat expectations.

The results come a day after ADP agreed to sell its consumer-health-spending account and Cobra businesses to WageWorks Inc. for $235 million.

ADP revised its guidance for the fiscal year ending June 2017 to reflect the asset sale. The company now projects adjusted per-share earnings from continuing operations growth of 11% to 13% on a revenue increase of 7% to 8%. ADP previously expected per-share profit from continuing operations to increase 10% to 12% and revenue growth of 7% to 9%.

Chief Financial Officer Jan Siegmund said new business bookings were flat, in line with expectations, as a result of a tough comparison with the year-earlier period.

For the first quarter ended Sept. 30, ADP reported a profit of $368.7 million, or 81 cents a share, up from $336.6 million, or 72 cents a share, a year earlier. Excluding restructuring charges, year-earlier asset-sale gains and other items, adjusted per-share earnings from continuing operations rose to 86 cents from 68 cents. Revenue increased 7.5% to $2.92 billion.

Analysts expected per-share profit of 76 cents and revenue of $2.92 billion, according to FactSet.

In ADP's employer-services segment, revenue grew 6% as the number of employees on clients' payrolls expanded by 2.7% in the U.S. on a comparable basis.

In the company's professional-employer-organizations services unit, which outsources administration services, revenue increased 13%.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

November 02, 2016 08:45 ET (12:45 GMT)

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