ADP (ADP) Tops Q1 EPS by 43c, Raises FY21 Outlook

ADP (NASDAQ: ADP) reported Q1 EPS of $1.41, $0.43 better than the analyst estimate of $0.98. Revenue for the quarter came in at $3.5 billion versus the consensus estimate of $3.28 billion.

“ADP’s strong performance at the start of the 2021 fiscal year reflected the strength of our company’s unmatched scale and diversification, even as the COVID-19 pandemic remains a source of worldwide economic uncertainty,” said Carlos Rodriguez, President and Chief Executive Officer, ADP. “We are encouraged by the gradual improvement made by the global economy as seen in higher employment levels and increased business activity, and we will continue to focus on our strategic investments and position ourselves to gain additional momentum as we emerge from the current environment.”

“Our first quarter results significantly exceeded our expectations across the board, which was a result of outstanding execution through a period where employment levels among our clients still showed high single-digit declines compared to last year,” said Kathleen Winters, Chief Financial Officer, ADP. “We are encouraged by the strong start to the year for our new business bookings, and continue to manage costs prudently. While we still expect to face headwinds over the course of the year, we will continue to look for ways to drive strong performance in both the near and long-term.”

GUIDANCE:

Outlook raised

Consolidated Fiscal 2021 Outlook
•Revenue decline of (1)% to growth of 1%
•Adjusted EBIT margin decline of (150) to (100) basis points
•Adjusted effective tax rate of 23.1%
•Diluted EPS decline of (4)% to flat
•Adjusted diluted EPS decline of (7)% to (3)%

For earnings history and earnings-related data on ADP (ADP) click here.

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