ADP 4Q Net Up, Sees Fiscal Year EPS Growth

By Rob Curran

Payroll-services company Automatic Data Processing on Wednesday registered brisk fiscal fourth-quarter earnings growth and forecast more gains in the coming months, in the latest sign of resilience from the U.S. labor market.

The Roseland, N.J., firm, which provides payroll services to more than one million companies, posted earnings for the quarter ended in June of $829.3 million, or $2.02 a share, up from $776.7 million, or $1.87 a share, a year earlier.

Backing out certain one-off items, ADP's adjusted earnings of $2.09, just shy of the average analyst target of $2.10 a share, as tabulated by FactSet.

Fiscal second-quarter revenue rose 6% to $4.77 billion, edging the average analyst target of $4.74 billion, as per FactSet.

For the fiscal year ending in June 2025, ADP projected earnings-per-share growth in a range between 9% and 11% from 2024 levels. For the fiscal year just ended, ADP posted earnings of $9.10 a share. On an adjusted basis, ADP forecast fiscal 2025 earnings growth in a range between 8% and 10% from 2024 levels of $9.18 a share.

ADP forecast fiscal 2025 revenue growth of 5% to 6% from 2024 levels, which translates to revenue in a range between $20.16 billion and $20.35 billion.

ADP will release its survey on private employment trends for July later on Wednesday.

Write to Rob Curran at [e-mail]

(END) Dow Jones Newswires

07-31-24 0749ET