Automatic Data Processing Earnings: Everything You Must Know Now

Automatic Data Processing, Inc. (NASDAQ:ADP) delivered a profit and missed Wall Street’s expectations, AND met the revenue expectation.

Automatic Data Processing, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5.77% to $0.55 in the quarter versus EPS of $0.52 in the year-earlier quarter.

Revenue: Rose 6.58% to $2.81 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Automatic Data Processing, Inc. reported adjusted EPS income of $0.55 per share. By that measure, the company missed the mean analyst estimate of $0.57. It met the average revenue estimate of $2.81 billion.

Quoting Management: Carlos Rodriguez, president and chief executive officer, said, “ADP reported very solid results for fiscal 2013. I am particularly pleased with the strength in combined worldwide new business bookings for Employer Services and PEO Services, which grew 14% for the quarter on a very tough grow-over comparable with last year’s fourth quarter growth of 20%. As a result of the strong finish to the fiscal year, new business bookings grew 11% for the year, ahead of our expectations. I am also pleased that worldwide client revenue retention increased to a new record level, and each of our business segments continued to perform well achieving good revenue growth and strong pretax margin expansion.”

Key Stats (on next page)…

Revenue decreased 9.77% from $3.11 billion in the previous quarter. EPS decreased 44.44% from $0.99 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.68 and has not changed. For the current year, the average estimate has moved up from a profit of $2.90 to a profit of $2.91 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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