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View All NewsADP reports PEO revenue up 15%
PEO revenue rose 15% at ADP (NASD: ADP) in the company’s fiscal third quarter ended March 31. Average worksite employees paid by PEO services rose 13% in the quarter to approximately 369,000.
The Roseland, N.J.-based company provides other services, including paycheck processing. Total revenue rose 7%, while net earnings fell 6%. Growth in revenue and pretax earnings was negatively impacted two percentage points by unfavorable foreign currency translation.
| (US$ millions) | Q3 2015 | Q3 2014 | % growth |
| PEO revenue | $744.7 | $647.4 | 15% |
| Revenues other than interest on funds held for clients or PEO | $2,185.6 | $2,077.6 | 5% |
| Interest on funds held for clients | $101.4 | $100.1 | 1% |
| Total company revenue (including non PEO) | $3,031.7 | $2,825.1 | 7% |
| Net earnings | $489.6 | $521.6 | -6% |
Quote
“ADP delivered a solid quarter of revenue and earnings growth despite pressure from unfavorable foreign currency translation, and I am pleased with the margin expansion in our business segments,” said CFO Jan Siegmund. “ADP continues its shareholder friendly actions, and through the third quarter of fiscal 2015 has repurchased 13.3 million shares at a cost of $1.1 billion, reflecting our continued commitment to return excess cash to shareholders.”
Guidance
ADP now forecasts PEO services revenue to rise approximately 16% in its 2015 fiscal year compared with the prior forecast of 15% to 17%.
Share price and market cap
Shares in ADP fell 0.70% in early afternoon trading today to $84.79. The company had a market cap of $40.29 billion, according to Yahoo!