ADP Lowers Outlook on Foreign-Exchange Pressure
February 03 2016 - 8:09AM
Dow Jones News
By Chelsey Dulaney
Automatic Data Processing Inc. on Wednesday edged down its
guidance for its fiscal year as it faces more pressure from foreign
exchange, though the payrolls company reported higher profit and
revenue for its latest quarter.
For the fiscal year ending in June, ADP said it now expects
per-share earnings growth of 11% to 13%, compared with its earlier
forecast for 12% to 14% growth. ADP cited additional selling
expenses tied to its raised forecast for 12% growth in world-wide
bookings, up from its prior guidance for 10% growth in the key
metric, and more pressure from currency impacts.
The company said it expects revenue growth of 7%, at the low end
of its guidance, due to a bigger hit from foreign exchange.
For the fiscal second quarter ended Dec. 31, the company
reported a profit of $341.4 million, or 74 cents a share, up from
$331.5 million, or 69 cents a share, a year earlier. Excluding
one-time items and discontinued operations, earnings rose to 72
cents a share from 69 cents a share.
Analysts polled by Thomson Reuters had forecast earnings of 72
cents a share.
Total revenue rose 5.8% to $2.81 billion, matching analysts'
expectations. Revenue was up 8% excluding currency impacts.
World-wide new-business bookings, a key metric, grew 15%.
Revenue at the employer-services segment, the company's biggest
top-line contributor, rose 3.3% to $2.21 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 18% to $737.4
million.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
February 03, 2016 07:54 ET (12:54 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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