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UPDATE: ADP Q2 Earnings Beat Views

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Automatic Data Processing Inc. (NASDAQ: ADP) reported upbeat earnings for the fiscal second quarter.

The Roseland, New Jersey-based company posted a quarterly profit of $331.5 million, or $0.69 per share, compared to $377 million, or $0.78 per share, in the year-ago period. Excluding items, the company's earnings from continuing operations came in at $0.70 per share.

Its revenue rose 7% to $2.7 billion. However, analysts were expecting earnings of $0.68 per share on revenue of $2.68 billion.

Employer Services revenue gained 4%, while PEO Services revenue climbed 18% in the quarter.

Worldwide new business bookings climbed 15% y/y in the quarter.

During the quarter, ADP repurchased 5.2 million shares at a cost of $436 million.

"ADP's second quarter results reflect solid performance despite pressure from unfavorable foreign currency translation," said Jan Siegmund, chief financial officer, ADP. "As expected, we experienced slower growth in earnings for the quarter as investments in our products and salesforce resulted in additional expenses when compared with last year's second quarter."

For full-year fiscal 2015, ADP still projects revenue growth of 7% to 8% and EPS growth from continuing operations of 12% to 14%.

ADP shares gained 2.04% to close at $85.14 yesterday.

Posted-In: profitEarnings News

 

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