ADP 4th-quarter profit increases as revenue improves across business segments
Automatic Data Processing Inc.'s fiscal fourth-quarter net income climbed 27 percent as revenue improved across its businesses.
The Roseland, New Jersey company's net income increased to $288.7 million, or 60 cents per share, from $227 million, or 47 cents per share, a year ago.
Earnings, adjusted for non-recurring costs, came to 63 cents per share. The performance met the expectations of analysts surveyed by FactSet.
The payroll and human resources company said revenue climbed 10 percent to $3.07 billion from $2.8 billion. This beat Wall Street's forecast of $3.04 billion.
Revenue for the employee services segment increased 8 percent, while it climbed 19 percent for the PEO services division. The dealer services unit — which ADP plans to spin off — reported an 8 percent rise in revenue.
ADP said Thursday that its full-year profit climbed 8 percent to $1.52 billion, or $3.14 per share, from $1.41 billion, or $2.89 per share, a year earlier. Annual revenue rose 8 percent to $12.21 billion from $11.29 billion.
For fiscal 2015, ADP anticipates its adjusted profit climbing 11 percent to 13 percent from fiscal 2014's $3.14 per share. That implies a profit in a range of about $3.49 to $3.55 per share. Analysts expect $3.49 per share.
The company foresees revenue rising 7 percent to 8 percent. Based on fiscal 2014's $12.21 billion, this implies approximately $13.07 billion to $13.19 billion. Wall Street is looking for $13.14 billion.
ADP's stock fell 87 cents to $81.28 in afternoon trading.