Daily News
View All NewsADP’s PEO revenue rises 16% in fiscal Q4; PEO worksite employees up 12%
PEO revenue rose 16% at ADP (NASD: ADP) in the company’s 2017 fiscal fourth quarter ended June 30. The Roseland, NJ-based firm provides other services, including paycheck processing. Total revenue rose 6% to $3.06 billion in the quarter, up 7% on an organic basis; however, net earnings declined.
Average worksite employees paid by PEO services increased 12% for the quarter to approximately 485,000.
| (US$ millions) | Q4 2017 | Q4 2016 | % change |
| PEO revenue | $886.4 | $763.6 | 16% |
| Revenues other than interest on funds held for clients or PEO | $2,073.7 | $2,037.3 | 2% |
| Interest on funds held for clients | $104.7 | $97.3 | 8% |
| Total company revenue (including non PEO) | $3,064.8 | $2,898.2 | 6% |
| Net earnings | $265.8 | $282.0 | -6% |
Quote
“We finished the year in line with our expectations, including solid organic revenue growth of 7% benefitting from continued strong performance of our PEO,” President and CEO Carlos Rodriguez said. “We move into fiscal 2018 with confidence in our long-term strategy and will continue to invest in product, service, and sales to advance the value we create for clients and capture market opportunities.”
Fiscal-year results
| (US$ millions) | FY 2017 | FY 2016 | % change |
| PEO revenue | $3,464.3 | $3,056.5 | 13% |
| Revenues other than interest on funds held for clients or PEO | $8,518.1 | $8,234.0 | 3% |
| Interest on funds held for clients | $397.4 | $377.3 | 5% |
| Total company revenue (including non PEO) | $12,379.8 | $11,667.8 | 6% |
| Net earnings | $1,733.4 | $1,492.5 | 16% |
Guidance
For its full 2018 fiscal year, ADP forecasts its PEO services revenue to rise 11% to 13% and its total revenue to rise 5% to 6%.
Share price and market cap
Shares in ADP rose 4.26% in early afternoon trading today to $110.58. The company had a market cap of $49.40 billion, according to Yahoo.