Seeking Alpha

ADP rises; guidance hike, bookings overshadow FQ3 miss

  • Though ADP (ADP +1.3%) missed FQ3 estimates, it now expects FY14 revenue growth to be at the high end of a prior 7%-8% range. EPS growth is forecast to be at the midpoint of a prior 8%-10% range, and pre-tax margin is still expected to come in at 18.8%.
  • Also helping ADP's cause: New business bookings for its employer and professional employer organization (PEO) services ops rose 14% Y/Y, an improvement from FQ2's  7%.
  • Employer services revenue +6% Y/Y to $2.35B, PEO services +15% to $651M, dealer services (about to be spun off) +7% to $495M.
  • Opex rose 8% Y/Y to $1.64B (slightly above rev. growth of 7%), and pre-tax margin fell 10 bps to 23.2%. $42M was spent on buybacks.
  • FQ3 results, PR
Comments (1)
  • dbt01
    , contributor
    Comments (592) | Send Message
     
    did say that dividend growth will be lower for next two years though.
    30 Apr 2014, 03:47 PM Reply Like
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