Automatic Data Processing (ADP) Reports In-Line Q4 EPS

Automatic Data Processing (NASDAQ: ADP) reported Q4 EPS of $0.63, in-line with the analyst estimate of $0.63. Revenue for the quarter came in at $3.1 billion versus the consensus estimate of $3.03 billion.

"ADP reported solid results for fiscal 2014, and we have demonstrated our focus and commitment to sustaining our position as a global leader of Human Capital Management through our product innovations and our decision to spin-off the Dealer Services business into its own independent, publicly-traded company," said Carlos Rodriguez, president and chief executive officer, ADP. "New business bookings growth of 7% was slightly below our expectations, but I am pleased that new business bookings totaled over $1.4 billion for the year as these new recurring revenues will contribute to future revenue growth. Additionally, our Employer Services worldwide client revenue retention improved to 91.4% for the year, which is an all-time high. I believe that these results are evidence that our cloud-based solutions are resonating in the market."

"Each of our business segments posted good results for the year, driving solid revenue growth and particularly good pretax margin expansion," said Jan Siegmund, chief financial officer, ADP. "ADP returned over $1.5 billion in excess cash to shareholders in fiscal 2014 through dividends and share buybacks, and we remain committed to our shareholder friendly actions."

Total ADP Fiscal 2015 Forecast

Revenues – we anticipate 7% to 8% growth.
Pretax Margins – we anticipate 75 to 100 basis points of pretax margin expansion from the adjusted 18.8% in fiscal 2014.
Effective Tax Rate – we anticipate an effective tax rate of 34.6% compared with the 33.7% in fiscal 2014.
Diluted Earnings per Share from Continuing Operations – we anticipate 11% to 13% growth compared to the adjusted $3.14 in fiscal 2014.

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

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