ADP (ADP) Tops Q3 EPS by 3c, Updates Outlook
ADP (NASDAQ: ADP) reported Q3 EPS of $1.92, $0.03 better than the analyst estimate of $1.89. Revenue for the quarter came in at $4.05 billion versus the consensus estimate of $4.03 billion.
Consolidated Fiscal 2020 Outlook
- Revenue growth of about 3%
- •Adjusted EBIT margin down 25 to up 25 basis points
- •Adjusted effective tax rate of 22.9%
- •Diluted EPS growth of 6 to 9%
- •Adjusted diluted EPS growth of 4 to 7%
Fiscal 2020 Outlook
Fiscal 2019 Revised (a), unaudited | January 29, 2020 Fiscal 2020 Outlook (b) | April 29, 2020 Fiscal 2020 Outlook (b) | ||||||||||||
| Total ADP | Revenues | $14,110M | ↑ 6% | ↑ 3% | ||||||||||
| Adj. EBIT Margin | 22.4% | ↑ 100 - 125 bps | ↓ (25) bps to ↑ 25 bps | |||||||||||
| Adj. Effective Tax Rate | 23.8% | 23.2% | 22.9% | |||||||||||
| Adj. Diluted EPS | $5.45 | ↑ 12 - 14% | ↑ 4 - 7% | |||||||||||
| Employer Services | Revenues | $9,943M | ↑ 4% | ↑ 1 - 2% | ||||||||||
| Margin | 29.8% | ↑ 100 - 125 bps | ↓ (25) bps to ↑ 25 bps | |||||||||||
| ES New Business Bookings | $1.6B | ↑ 6 - 7% | ↓ ~(20)% | |||||||||||
| Client Revenue Retention | 90.8% | ↑ 10 - 20 bps | ↓ (30) to (50) bps | |||||||||||
| Pays Per Control | ↑ 2.7% | ↑ 2.5% | ↓ (2) - (2.5)% | |||||||||||
| PEO Services | Revenues | $4,178M | ↑ 9 - 10% | ↑ 5 - 7% | ||||||||||
| Revenues Ex Pass-throughs | $1,530M | ↑ 7 - 8% | ↑ 3 - 5% | |||||||||||
| Margin | 14.7% | Flat to ↓ (25) bps | ↓ (100) to (125) bps | |||||||||||
| Average WSEs | 547,000 | ↑ 7 - 8% | ↑ 3 - 5% | |||||||||||
| Client Funds Interest | Average Client Funds Balances | $25.5B | ↑ 4% | ↑ 1% | ||||||||||
| Yield on Client Funds Portfolio | 2.2% | Flat at 2.2% | ↓ (10) bps to 2.1% | |||||||||||
| Client Funds Interest Revenue | $562M | $570 - $580M | $540 - $550M | |||||||||||
| Extended Investment Strategy | $557M | $575 - $585M | $550 - $560M | |||||||||||
For earnings history and earnings-related data on ADP (ADP) click here.