ADP (ADP) Tops Q3 EPS by 7c

ADP (NASDAQ: ADP) reported Q3 EPS of $1.89, $0.07 better than the analyst estimate of $1.82. Revenue for the quarter came in at $4.1 billion versus the consensus estimate of $4.08 billion.

Fiscal 2021 Outlook
Certain components of ADP’s fiscal 2021 outlook and related growth comparisons exclude the impact of the following items and are discussed on an adjusted basis where applicable. Please refer to the accompanying financial tables for a reconciliation of these adjusted amounts to their closest comparable GAAP measure.
•Fiscal 2020 pre-tax charges totaling $128 million related to transformation initiatives, severance charges and charges related to the settlement of certain legal matters
•Fiscal 2021 expected pre-tax charges of less than $5 million related to transformation initiatives
Consolidated Fiscal 2021 Outlook
•Revenue growth of 2% to 3%
•Adjusted EBIT margin decline of (75) to (50) basis points
•Adjusted effective tax rate of 23.0%
•Diluted EPS growth of 4% to 5%
•Adjusted diluted EPS growth of flat to 1%
Employer Services Segment Fiscal 2021 Outlook
•Employer Services revenue growth of about 1%
•Employer Services margin decline of (75) to (50) basis points
•Employer Services New Business Bookings growth of 20% to 25%
•Employer Services client revenue retention increase of at least 125 basis points
•Decrease in U.S. pays per control of (4)% to (3)%
PEO Services Segment Fiscal 2021 Outlook
•PEO Services revenue growth of 5% to 6%
•PEO Services revenue, excluding zero-margin benefits, growth of 5% to 6%
•PEO Services margin increase of about 75 basis points
•PEO Services Average Worksite Employee count growth of 1% to 2%

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

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