Free Post Earnings Research Report: Automatic Data Processing’s Quarterly Earnings Advanced 16.03%

Stock Monitor: Descartes Systems Group Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 31, 2018 / If you want access to our free earnings report on Automatic Data Processing, Inc. (NASDAQ: ADP) (“ADP”), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ADP. On May 02, 2018, ADP reported financial results for the third quarter of 2018 ending March 31, 2018. The Company surpassed analysts’ estimates for earnings as well as revenue in Q3 FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Automatic Data Processing most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

ADP’s total revenues reached $3.69 billion for Q3 FY18, reflecting an increase of 8.27% from $3.41 billion in Q3 FY17. The reported revenue number exceeded analysts’ consensus estimates of $3.67 billion. On an organic constant currency basis, ADP’s revenues increased 6% on a y-o-y basis in the reported quarter.

In the quarter under review, ADP’s core revenues increased 7% to $2.49 billion on a y-o-y basis, interest on funds held for clients advanced 20.79% to $134.80 million on a y-o-y basis, and PEO revenues jumped 9.89% to $1.07 billion on a y-o-y basis.

During Q3 FY18, ADP’s total cost of revenues was $2.08 billion, 8.71% higher than $1.91 billion in Q3 FY17. The Company incurred selling, general, and administrative (SG&A) expenses of $755.10 million in the reported quarter, an increase of 13.55% from $665 million in the prior year’s corresponding quarter. ADP had earnings before income taxes of $852.60 million in Q3 FY18, up 2.98% from $827.90 million in Q3 FY17.

ADP had net earnings of $643.10 million for the quarter ending March 31, 2018, an increase of 9.39% from $587.90 million for the same period last year. The Company’s diluted earnings per share (DEPS) also ascended 10.69% to $1.45 in the reported quarter from $1.31 in the year ago same quarter. The reported earnings included charges of transformation initiatives. ADP’s adjusted DEPS, excluding the non-recurring items, was $1.52 in Q3 FY18, up 16.03% from $1.31 in Q3 FY17. This was higher than analysts’ consensus estimates of $1.44 per share.

Automatic Data Processing’s Segment Details

During Q3 FY18, the Employer Services segment’s net revenues were $2.80 billion, up 6.73% on a y-o-y basis. This segment had earnings of $1.02 billion in Q3 FY18 compared to $963 million in Q3 FY17, reflecting an increase of 6.18%.

The PEO services segment reported revenues of $1.07 billion in Q3 FY18, an increment of 9.92% from Q3 FY17. This segment had earnings of $136.30 million in the quarter under review, up 13.58% from $120 million in the previous year’s same quarter.

Cash Matters

ADP had cash and cash equivalents of $2.29 billion as on March 31, 2018, a decline of 17.51% from $2.78 billion as on June 30, 2017. The Company had a long-term debt of $2 billion as on March 31, 2018, same as on June 30, 2017.

ADP’s cash flow from operating activities was $1.81 billion for the nine months ending March 31, 2018, up 8.47% from $1.67 billion for the nine months ending March 31, 2017.

ADP incurred capital expenditures of $159.60 million in Q3 FY18, 8.54% lower than $174.50 million in Q3 FY17. ADP paid dividends of $785.10 million in Q3 FY18, an increase of 6.18% from $739.40 million in Q3 FY17. The Company spent $596.20 million on repurchases of common stock in the reported quarter, 37.69% lower than $956.80 million in the same period last year.

Outlook

For full year 2018, ADP expects revenue growth of 7% to 8%. This revenue forecast includes two percentage points of growth from acquisitions and the impact from foreign currency. The Company now anticipates adjusted earnings before interest and tax (EBIT) margin to be about flat for FY18 compared to the prior forecast of down 50 basis points.

ADP expects diluted earnings per share to be up 11% to 12% in FY18 compared to its previous guidance of 8% to 9% growth. The Company expects adjusted diluted earnings per share growth to be 16% to 17% compared to its prior forecast of 12% to 13% growth.

On April 11, 2018, ADP declared a regular quarterly dividend of $0.69 per share, which implies an increase of 10% and a return to shareholders of a portion of the benefits from the Tax Cuts and Jobs Act of December 2017. Moreover, ADP’s Board of Directors expects to increase dividend further in November 2018, in-line with ADP’s historical pattern throughout its 43-year track record of annual dividend increases.

Stock Performance Snapshot

May 30, 2018 – At Wednesday’s closing bell, Automatic Data Processing’s stock was marginally up 0.54%, ending the trading session at $130.63.

Volume traded for the day: 1.89 million shares.

Stock performance in the last month – up 10.63%; previous three-month period – up 13.28%; past twelve-month period – up 28.66%; and year-to-date – up 11.47%

After yesterday’s close, Automatic Data Processing’s market cap was at $57.61 billion.

Price to Earnings (P/E) ratio was at 33.46.

The stock has a dividend yield of 2.11%.

The stock is part of the Technology sector, categorized under the Business Software & Services industry. This sector was up 0.9% at the end of the session.

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