ADP 3Q Earnings, Revenue Increase in 3Q
By Emon Reiser
ADP saw a double-digit increase in third-quarter earnings as new business bookings and client retention boosted results.
The Roseland, N.J.-based HR technology company reported a profit of $1.18 billion, or $2.88 a share, for the quarter ended March 31, up 13% from $1.04 billion, or $2.51 a share, in the year-ago period.
Adjusted for certain one-time items, ADP reported earnings of $2.88 a share compared with $2.52 a share in the year-ago quarter. Analysts expected $2.81 a share.
Revenue increased 7% to $5.25 billion. Analysts expected $5.23 billion.
Interest on funds held for clients increased 29% to $321 million during the quarter, while average client funds balances increased 6% to $41.7 billion. Employer services revenues increased 8%.
"With a stable HCM demand backdrop, we are focused on executing in the fourth quarter and building momentum into fiscal 2025," ADP Chief Executive Maria Black said.
ADP guided for revenue growth between 6% and 7% for fiscal 2024. The company expects earnings per share to grow between 10% and 12%.
Write to Emon Reiser at emon.reiser@wsj.com
Write to Emon Reiser at emon.reiser@wsj.com
(END) Dow Jones Newswires
May 01, 2024 08:01 ET (12:01 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
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