Daily News
View All NewsADP reports PEO revenue up 18%
PEO revenue rose 18% at ADP (NASD: ADP) in the company’s fiscal second quarter ended Dec. 31. Average PEO worksite employees rose 15% in the second quarter to approximately 354,000.
The Roseland, N.J.-based company provides other services, including paycheck processing. Total revenue rose 7%.
| (US$ millions) | Q2 2015 | Q2 2014 | % growth |
| PEO revenue | $622.2 | $527.8 | 18% |
| Revenues other than interest on funds held for clients or PEO | $1,948.1 | $1,876.7 | 4% |
| Interest on funds held for clients | $91.0 | $89.2 | 2% |
| Total company revenue (including non PEO) | $2,661.3 | $2,493.7 | 7% |
| Net earnings | $331.5 | $377.0 | -12% |
Quote
“ADP’s second quarter results reflect solid performance despite pressure from unfavorable foreign currency translation,” said CFO Jan Siegmund. “As expected, we experienced slower growth in earnings for the quarter as investments in our products and salesforce resulted in additional expenses when compared with last year’s second quarter.”
Guidance
ADP forecasts PEO services revenue to rise 15 percent to 17 percent in its 2015 fiscal year.
Share price and market cap
Shares in ADP rose 0.86% in early afternoon trading to $85.87. The company had a market cap of $41.39 billion, according to Yahoo!