The company reported quarterly adjusted EPS of $2.08, beating the analyst consensus of $2.02.

Adjusted EBIT increased 7% to $1.1 billion, and adjusted EBIT margin increased ten basis points to 24.2%.

Net earnings increased 10% Y/Y to $859.4 million, and adjusted net earnings increased 11% Y/Y to $860 million. 

"Our first quarter revenue growth and margin performance exceeded our expectations, as we benefited from solid new business bookings growth, strong client revenue retention, and higher client funds interest revenue," said Don McGuire, Chief Financial Officer, ADP. "We remain focused on delivering against our profitability commitments while at the same time investing in our business to drive sustainable long-term growth." 

ADP exited the quarter with cash and equivalents worth $1.44 billion. 

The company's long-term debt at the end of the quarter stood at $2.989 billion.

In FY24, the company expects Employer Services revenue growth of 7% to 8% and PEO Services revenue growth of 3% to 4%.

Price Action: ADP shares are trading lower by 8.03% to $221.13 on the last check Wednesday.