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View All NewsADP reports PEO revenue up 18%
PEO revenue rose 18% at ADP (NASD: ADP) in the company’s 2016 fiscal second quarter ended Dec. 31. Average worksite employees paid by PEO services rose 14% for the quarter to approximately 403,000.
Roseland, N.J.-based ADP provides other services, including paycheck processing. Total revenue rose 6% — up 8% on a constant dollar basis — to $2.8 billion. This includes a negative impact of approximately one percentage point from a business sold at the end of the first quarter of fiscal 2016.
| (US$ millions) | Q2 2016 | Q2 2015 | % change |
| PEO revenue | $733.3 | $622.2 | 18% |
| Revenues other than interest on funds held for clients or PEO | $1,984.4 | $1,940.5 | 2% |
| Interest on funds held for clients | $89.3 | $90.9 | -2% |
| Total company revenue (including non PEO) | $2,807.0 | $2,653.6 | 6% |
| Net earnings | $341.4 | $331.5 | 3% |
Quote
“We continue to experience strong momentum in new business bookings, reflecting the confidence our clients have in ADP’s ability to assist with their human capital management needs,” said President and CEO Carlos Rodriguez. “As a result, we are again increasing our forecast for new business bookings, and now expect at least 12% growth for fiscal 2016.”
Guidance
ADP now forecasts PEO services revenue to rise approximately 16% to 18% in its 2016 fiscal year, up from its prior forecast of 15% to 17%.
Share price and market cap
Shares in ADP fell 0.84% in early afternoon trading today to $81.48. The company had a market cap of $37.58 billion, according to Yahoo!