Automatic Data Processing Q1 Profit Beats Views

reported upbeat earnings for its fiscal first quarter on Wednesday. The Roseland, New Jersey-based company reported a quarterly profit of $336.6 million, or $0.72 per share, compared to $295.2 million, or $0.61 per share, in the year-ago period. Excluding one-time items, the company's earnings on a continuing operations basis surged 10 percent to $0.68 per share. Its total revenue surged 5.8 percent to $2.71 billion. However, analysts were expecting earnings of $0.65 per share on revenue of $2.72 billion. The average estimate among 11 Estimize users was for earnings of $0.65 per share and revenue of $2.73 billion. World-wide new-business bookings surged 13 percent for the quarter. Revenue at ADP's employer-services segment rose 2.8 percent to $2.13 billion on a continuing operations basis, while revenue from professional-employer-organizations services rose 18 percent to $701.5 million. Adjusted EBIT climbed 6 percent to $477 million in the quarter. "ADP had a good start to fiscal 2016, and we continue to experience very good momentum in new business bookings," said Carlos Rodriguez, president and chief executive officer, ADP. "Our new business bookings performance for the quarter reflects the confidence our clients have in ADP's ability to assist them with their HCM needs, including compliance with the Affordable Care Act. As a result of this solid start, we now expect new business bookings growth of at least 10% for fiscal 2016." For the full year, ADP now projects earnings to be the lower end of its forecast for 12 percent to 14 percent growth. ADP now expects worldwide new business bookings growth of at least 10 percent, versus previous outlook of 8 percent to 10 percent growth. ADP shares closed at $90.33 yesterday.