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View All NewsADP reports PEO revenue up 14% in quarter
PEO revenue rose 14% at ADP (NASD: ADP) in the company’s 2018 fiscal first quarter ended Sept. 30. The Roseland, NJ-based firm provides other services, including paycheck processing. Total revenue rose 6% to $3.08 billion in the first quarter.
| (US$ millions) | Q1 2018 | Q1 2017 | % change |
| PEO revenue | $898.5 | $790.3 | 14% |
| Revenue other than interest on funds held for clients or PEO | $2,080.9 | $2,037.4 | 2% |
| Interest on funds held for clients | $99.4 | $89.2 | 11% |
| Total company revenue (including non-PEO) | $3,078.8 | $2,916.9 | 6% |
| Net earnings | $401.5 | $368.7 | 9% |
Average worksite employees paid by PEO services increased 10% for the quarter to approximately 484,000.
ADP is also engaged in an ongoing proxy battle with activist investor Pershing Square Capital, run by Bill Ackman. Bloomberg reported on the developments yesterday.
Guidance
For its full 2018 fiscal year, ADP continues to forecast its PEO services revenue to rise 11% to 13%.
Share price and market cap
Shares in ADP fell 1.50% in early afternoon trading today to $113.63. The company had a market cap of $50.54 billion, according to Yahoo at 2:15 p.m. EDT.