ADP Lowers 2017 Outlook as Bookings Fall
February 01 2017 - 10:44AM
Dow Jones News
By Imani Moise
Automatic Data Processing Inc.'s earnings rose in the most
recent quarter despite a slowdown in new bookings.
The payroll company lowered its 2017 outlook, forecasting
revenue growth of about 6% compared with prior guidance of 7% to 8%
growth.
Additionally, the company expects new bookings to be about flat
compared with its previous forecast of 4% to 6% growth.
New business bookings declined 5% year-over-year amid customer
uncertainty over U.S. elections, the company said. Chief Financial
Officer Jan Siegmund said the booking pressure should subside as
the year progresses.
Employer services revenue increased 4% and the number of
employees on client's payrolls increased 2.3% on a comparable
basis.
In all for the fiscal second quarter, ADP reported a profit of
$510.9 million, or $1.13 a share, up from $341.4 million, or 74
cents, a year earlier. Excluding certain items, earnings rose to 87
cents a share from 72 cents a share.
Revenue grew 6.4% to $2.99 billion.
Analysts polled by Thomson Reuters had forecast earnings of 81
cents on $3.02 billion in revenue.
Last month, ADP completed the acquisition of human relations
company The Marcus Buckingham Co. for approximately $70
million.
Shares fell 5.2% to $95.70 during early trading Wednesday but
are up 10% over the past three months.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
February 01, 2017 10:29 ET (15:29 GMT)
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