ADP Lifts FY23 Adj. Earnings Growth View; Backs Revenue Forecast - Update

(RTTNews) - Automatic Data Processing Inc. (ADP), while announcing higher profit and revenues for its third quarter, both above market estimates, on Wednesday raised its fiscal 2023 earnings growth view.

For the full year, the company now expects earnings per share and adjusted earnings per share growth of 16 percent to 17 percent, while the previous outlook was adjusted earnings per share growth of 15 percent to 17 percent. Last year's adjusted earnings were $7.01 per share.

Further, the company continues to expect revenue growth of 8 percent to 9 percent from last year's $16.50 billion., and adjusted EBIT margin expansion of 125 to 150 basis points.

In its third quarter, ADP reported earnings at $1.04 billion or $2.51 per share, compared to $0.93 billion or $2.21 per share last year.

Adjusted earnings were $1.05 billion or $2.52 per share for the period. Analysts expected the company to earn $2.45 per share for the quarter.

The company's revenue for the quarter rose 9.3 percent to $4.93 billion from $4.51 billion last year.

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