Automatic Data Processing, Inc (NASDAQ: ADP) reported third-quarter FY23 revenue growth of 10% year-on-year to $4.93 billion, beating the consensus of $4.88 billion.
Employer services revenue rose 11% Y/Y to $3.34 billion, and PEO services revenue grew 5% Y/Y to $1.59 billion.
Non-GAAP EPS of $2.52 beat the consensus of $2.45.
Adjusted EBIT margin expanded by 110 bps to 27.8%. ADP held $1.83 billion in cash and equivalents.
CEO Maria Black said, “Our innovative HCM solutions continue to meet and exceed the expectations of our clients and prospects, and we are proud to provide the trusted expertise they need to navigate the changing environment.”
“With continued healthy Employer Services new business bookings, client revenue retention, and U.S. pays per control growth in the third quarter, we are positioned for strong overall fiscal 2023 results,” CFO Don McGuire said.
2023 Outlook: ADP reiterated the revenue outlook of $17.82 billion – $17.98 billion (8% – 9% growth) versus the consensus of $17.91 billion.
It raised the non-GAAP EPS forecast from $8.06 – $8.20 to $8.13 – $8.20 versus the consensus of $8.13.
Price Action: ADP shares traded lower by 0.18% at $211.31 on the last check Wednesday.
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This article ADP Q1 Highlights: Beats Expectations, Raises FY23 EPS Outlook originally appeared on Benzinga.com
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Source: https://finance.yahoo.com/news/adp-q1-highlights-beats-expectations-172816948.html