Automatic Data Processing (ADP), a leading payroll-services company, announced positive financial results for its fiscal first quarter. The company experienced growth in both earnings and revenue, driven by new business acquisitions and increased yields on client funds.
Strong Financial Performance
ADP’s profit for the quarter reached $859.4 million, or $2.08 per share, compared to $779 million, or $1.87 per share, in the same period last year. Furthermore, adjusted earnings, which exclude one-time items, were also reported at $2.08 per share, surpassing analysts’ expectations of $2.02 per share.
Revenue Growth and Client Satisfaction
In terms of revenue, ADP recorded a 7% increase to reach $4.51 billion for the quarter. Although marginally below the projected $4.52 billion according to FactSet analysts, ADP’s Chief Financial Officer, Don McGuire, attributed the growth to the company’s success in securing new business, maintaining strong client revenue retention, and generating higher interest revenue from client funds.
Chief Financial Officer Don McGuire expressed satisfaction with the company’s impressive revenue growth and margin performance, stating that they surpassed ADP’s own expectations.