ADP Cuts FY24 Earnings Growth View, Lifts Revenue Forecast After Q1 Beats Market - Update

(RTTNews) - Automatic Data Processing Inc. (ADP) on Wednesday trimmed its fiscal 2024 earnings growth outlook on a reported and adjusted basis, but raised the revenue growth view. This was after reporting a higher profit for its first quarter above the Street estimates with revenue growth, also above market.

In pre-market activity on the Nasdaq, ADP shares were gaining around 1.4 percent to trade at $292.00.

Outlook

For fiscal 2025, ADP now projects earnings per share growth in a range of 8 to 10 percent and adjusted earnings per share growth in a range of 7 to 9 percent.

ADP previously projected earnings per share growth in a range of 9 to 11 percent and adjusted earnings per share growth in a range of 8 to 10 percent.

Further, consolidated revenue is now expected to grow in the range of 6 percent to 7 percent, higher than previous estimate of revenue growth of 5 to 6 percent.

The company said the outlook revision reflects the expected impact from the WorkForce Software acquisition.

Q1 Results

In its first quarter, net earnings totaled $956.3 million, or $2.34 per share, higher than last year's $859.4 million or $2.08 per share.

Adjusted earnings were $956.1 million or $2.33 per share for the period. Analysts on average had expected the company to earn $2.21 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company's revenue for the quarter rose 7.1 percent to $4.832 billion from $4.512 billion last year. The Street was looking for $4.77 billion.

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