By Chelsey Dulaney
Automatic Data Processing Inc. on Thursday reported
weaker-than-expected results for its June quarter, though the
payroll and benefits-administration company offered guidance for
its new fiscal year mostly above Wall Street expectations.
For the fiscal year ending next June, ADP forecast per-share
earnings growth of 12% to 14%, while analysts had forecast 12%
growth, according to Thomson Reuters.
The company expects its revenue to grow 7% to 9%, while analysts
had forecast 7% growth. The guidance includes a negative impact of
one to two percentage points from currency.
In the latest quarter, ADP said better-than-expected new
business bookings resulted in higher selling expenses, pressuring
margins and earnings growth. World-wide new-business bookings, a
key metric, grew 18%.
Revenue at the employer-services segment, the company's biggest
top-line contributor, grew 2.1% to $2.18 billion on a continuing
operations basis.
Revenue from professional-employer-organizations services jumped
16% to $678 million.
Overall, the company reported a profit of $336.2 million, or 72
cents a share, compared with $288.7 million, or 60 cents a share, a
year earlier. Per-share earnings from continuing operations were 55
cents.
Total revenue grew 5% to $2.69 billion.
Analysts polled by Thomson Reuters had predicted 59 cents a
share in earnings and $2.74 billion in revenue.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com
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