Automatic Data Processing Clocks 10% Revenue Growth In Q4 Backed By Client Revenue Retention; Offers Upbeat FY23 Outlook

  • Automatic Data Processing, Inc ADP reported fourth-quarter FY22 revenue growth of 10% year-on-year to $4.1 billion, beating the consensus of $4.05 billion.
  • Employer services revenue rose 8% Y/Y to $2.72 billion, PEO services revenue grew 16% Y/Y to $1.41 billion.
  • Non-GAAP EPS of $1.50 beat the consensus of $1.46.
  • The adjusted EBIT margin expanded 170 bps to 19.8%. ADP held $1.44 billion in cash and equivalents.
  • CEO Carlos Rodriguez said, "Over the course of fiscal 2022, we consistently exceeded our revenue growth expectations driven by significant sales momentum and near-record client revenue retention. Demand for our HCM and HR outsourcing services remains robust amid the increasingly dynamic world of work, and we are proud of the important role we play as a partner to our nearly one million clients."
  • 2023 Outlook: ADP expects revenue of $17.65 billion - $17.98 billion above the consensus of $17.63 billion.
  • It forecasted non-GAAP EPS of $7.92 - $8.13, above the consensus of $7.74.
  • Price Action: ADP shares traded higher by 2.15% at $222.59 on the last check Wednesday.
Loading...
Loading...
ADP Logo
ADPAutomatic Data Processing Inc
$302.54-1.07%

Stock Score Locked: Edge Members Only

Benzinga Rankings give you vital metrics on any stock – anytime.

Unlock Rankings
Edge Rankings
Momentum
77.19
Growth
36.49
Quality
60.71
Value
4.58
Price Trend
Short
Medium
Long
Market News and Data brought to you by Benzinga APIs
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise

Comments
Loading...