ADP Automatic Data Processing Inc

   By Austen Hufford 
 

Automatic Data Processing Inc. on Thursday said revenue and profit grew and reaffirmed its guidance, but results fell short of Wall Street expectations.

ADP backed its previous growth guidance for revenue and world-wide bookings, a key metric. For the fiscal year ending in June, ADP said it now expects per-share earnings growth of 12%, which its previous range bracketed.

Chief Executive Carlos Rodriguez said results were helped by companies using its services to ensure compliance with the Affordable Care Act.

For the quarter ended March 31, the company reported a profit of $532.5 million, or $1.17 a share, up from $489.6 million, or $1.03 a share, a year earlier. Excluding discontinued operations, earnings rose to $1.17 a share from $1.03 a share.

Total revenue rose 7.4% to $3.25 billion.

Analysts polled by Thomson Reuters had forecast earnings of $1.18 a share on revenue of $3.27 billion.

World-wide new-business bookings grew 13%.

Revenue at the employer-services segment, the company's biggest top-line contributor, rose 5% to $2.58 billion on a continuing operations basis. The number of employees on its clients' payrolls rose 2.5% in the U.S. on a comparable basis.

Revenue from professional-employer-organizations services unit, which outsources administration services, jumped 16% to $866.3 million.

ADP shares fell 0.5% to $89.58 and are up 11% in the last three months.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

April 28, 2016 10:12 ET (14:12 GMT)

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