ROSELAND - Automatic Data Processing Inc. (NASDAQ:ADP) reported a modest beat on earnings for its third quarter, with an adjusted EPS of $2.88, surpassing the analyst estimate of $2.79. The company's revenue also saw a slight increase, coming in at $5.25 billion, just above the consensus estimate of $5.23 billion.
The company's stock experienced a slight decrease of 1% following the earnings release, indicating a tempered market reaction. ADP's guidance for the upcoming periods projects an increase in adjusted EPS by 10% to 12% and revenue growth of 6% to 7%. Additionally, the company anticipates employer services new bookings to rise by 4% to 7%.
While the market response was muted, the company's performance indicates a continuation of its growth trajectory. ADP's third-quarter results reflect a consistent execution of its business strategy, as evidenced by the reported figures which marginally exceeded analyst expectations. The company's guidance suggests confidence in its ability to maintain growth in the near term.
In a statement, ADP's CEO commented on the results, highlighting the company's commitment to delivering shareholder value and expressing optimism about the future. "Our third-quarter results demonstrate the strength and resilience of our business model. We remain focused on innovation and providing exceptional service to our clients, which we believe will continue to drive our success," said the CEO.
Investors and stakeholders will be watching closely to see if ADP can sustain its growth momentum in line with its positive guidance for the upcoming quarters.
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