ADP rises; guidance hike, bookings overshadow FQ3 miss

|By:, SA News Editor

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