Automatic Data Processing (ADP), a leading payroll-services company based in Roseland, N.J., has announced impressive fiscal second-quarter revenue growth. This positive development is seen as a promising sign for the U.S. jobs market in 2024.
In the quarter ended December, ADP reported earnings of $878.4 million, or $2.13 per share, compared to $813.1 million, or $1.95 per share, in the same period last year. After adjusting for one-off accounting items, ADP’s earnings remained at $2.13 per share, surpassing the average analyst estimate of $2.10 per share according to FactSet.
Moreover, ADP’s fiscal second-quarter revenue experienced a 6.3% increase, reaching $4.67 billion. This figure slightly exceeded the average analyst target of $4.65 billion, as reported by FactSet.
Don McGuire, the Chief Financial Officer of ADP, expressed optimism about the company’s growth prospects for the remainder of the year, stating, “Following another quarter of record bookings and strong retention, we are well-positioned for steady growth over the remainder of the year.”
Looking ahead, ADP reconfirmed its adjusted earnings growth forecast of 10% to 12% from the fiscal 2023 level of $8.23 per share for the current fiscal year.
In terms of revenue, ADP restated its growth target range of 6% to 7% based on the $18 billion reported for the year ended June 30. Therefore, it aims to achieve a revenue range of $19.08 billion to $19.26 billion.