- Automatic Data Processing (NASDAQ:ADP) is up 2.8% after logging Q4 earnings that beat on top and bottom lines and raising its revenue outlook for the coming year.
- Revenues rose 8% and worldwide new business bookings were up 6%. Adjusted EPS rose 14% and beat expectations handily.
- GAAP net earnings fell 8% to $468M mainly due to a $205M pretax gain on the sale of its CHSA and COBRA businesses. Meanwhile earnings before income tax dropped 28% to $566M (adjusted EBIT rose 2% to $602M).
- Revenue by segment: Employer Services, $2.438B (up 6%); PEO Services, $945.3M (up 15%).
- It's raising expectations for EPS to an 8-9% gain from a previous forecast of -1% to 1% (adjusted EPS forecast now up 12-13% vs. a previous 5-7%), reflecting ongoing estimated benefits from tax reform.
- It's boosting expectations for fiscal 2018 revenue growth to 7-8%, from 6-8%. It assumes growth in worldwide new business bookings of 5-7% from $1.65B sold in 2017, and the company now expects EBIT margin will drop about 50 basis points for the year.
- Press release
- Now read: Automatic Data Processing, Inc. 2018 Q2 - Results - Earnings Call Slides
Original article