Thu, Jul. 30, 4:01 PM
- ADP (ADP -2.7%) has sold off after posting an FQ4 miss and guiding for FY16 (ends June '16) EPS to rise 12%-14% from an FY15 level of $2.89. That implies a range of $3.24-$3.29, below a $3.31 consensus. Revenue is expected to rise 7%-9%, in-line with an 8.1% consensus.
- The HR/BPO services giant notes FQ4 selling expenses were higher than expected due to strong bookings activity (+18% Y/Y). Employer services revenue rose 2% Y/Y to $2.18B; PEO services rose 16% to $678M. Op. margin rose 30 bps to 14.2%. Forex had a 3% impact on total revenue growth.
- FQ4 results, PR
Oct. 13, 2014, 5:07 PM
- In an article now out of embargo, David Hernandez observes Paylocty (PCTY +3.1%) has posted a 40% revenue CAGR over its last 4 fiscal year, thanks in large part to the ability of its cloud payroll software to take share from traditional payroll outsourcing providers such as ADP and Paychex (NASDAQ:PAYX).
- He notes Paylocity CEO Steve Beauchamp declared on a May CC (transcript) "more than 50% of our new business" comes from displacing traditional payroll outsources, while adding "ADP and Paychex would be the two most common providers in that space."
- ADP has rolled out its own cloud payroll offerings in an attempt to counter upstarts such as Paylocity. Paychex bought online payroll service provider SurePayroll in 2011.
- Though admitting ADP and Ultimate Software are beginning to provide tougher competition in Paylocity's midmarket niche, Hernandez still sees plenty of room for growth in the near-term, given the company has penetrated less than 2% of the midmarket (estimated to have 656K organizations as of 2010).
Oct. 3, 2014, 5:36 PM
Oct. 1, 2014, 12:46 PM
Jul. 31, 2014, 2:13 PM
- ADP (ADP -0.9%) expects FY15 (ends June '15) revenue growth of 7%-8% and EPS growth of 11%-13% (translates into EPS of $3.48-$3.54). That's in-line with a consensus for 7.5% growth and EPS of $3.49.
- Employer services revenue +8% Y/Y in FQ4 to $2.14B; PEO services +19% to $584M; dealer services (set to be spun off) +8% to $499.4M. Employer services margin +250 bps Y/Y to 26.3%, PEO services +70 bps to 10.7%, dealer services +210 bps to 22.6%.
- Total op. margin rose 170 bps to 14.6%. 430K+ clients now use ADP's cloud service offerings.
- FQ4 results, PR
Aug. 2, 2013, 9:56 AM
- Groupon (GRPN -0.2%) has been upgraded to Equal Weight by Evercore, a long-time bear.
- Chipmakers Broadcom (BRCM -1.4%) and Linear (LLTC -1.4%) have been cut to Neutral by UBS. Broadcom received 7 downgrades last week following its Q2 report.
- Guidance Software (GUID -17.3%) has been cut to Sell by Benchmark following its Q2 report and light 2013 guidance.
- ValueClick (VCLK -16.4%) has been cut to Underperform by Raymond James, and to Hold by Needham, in response to its Q2 report and light guidance.
- Citrix (CTXS +0.9%) has been upgraded to Outperform by Credit Suisse.
- Cbeyond (CBEY -4.3%) has been cut to Market Perform by FBR following its Q2 report.
- Automatic Data (ADP -1.2%) has been cut to Neutral by Susquehanna following its FQ4 report.
Mar. 1, 2012, 12:22 PM
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