Benzinga - by Anusuya Lahiri, Benzinga Editor.
Automatic Data Processing, Inc (NASDAQ:ADP) reported fiscal third-quarter 2024 revenues of $5.25 billion, beating the analyst consensus of $5.23 billion. Revenues increased 7% Y/Y.
The company reported quarterly adjusted EPS of $2.88, beating the analyst consensus of $2.79. The stock price gained after the print.
Adjusted EBIT increased 12% to $1.5 billion, and adjusted EBIT margin increased 140 bps to 29.3%.
Net earnings increased 14% Y/Y to $1.2 billion, and adjusted net earnings increased 13% Y/Y to $1.2 billion.
ADP held $3.3 billion in cash and equivalents as of March 31, 2024.
"Healthy new business bookings and client retention contributed to our strong third quarter results," said Maria Black, ADP's President and Chief Executive Officer.
FY24 Outlook: ADP reiterated its revenue growth outlook of 6%—7%, or $19.09 billion—$19.27 billion, versus the consensus of $19.15 billion, and adjusted diluted EPS growth of 10%—12%, or $9.05 – $9.22, versus the consensus of $9.13.
The company affirmed Employer Services revenue growth of 7% -8 % and PEO Services revenue growth of 3%-4%.
ADP stock gained 12% in the last 12 months. Investors can gain exposure to the stock via Madison ETFs Trust Madison Dividend Value ETF (NYSE:DIVL) and Litman Gregory Funds Trust Polen Capital Global Growth ETF (NYSE:PCGG).
Price Action: ADP shares are trading higher by 3.75% to $250.95 on the last check Wednesday.
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