ADP Q3 Results Up; Raises FY25 Earnings, Margin View; Backs Sales Growth Forecast - Update

(RTTNews) - Technology company Automatic Data Processing Inc. (ADP), while reporting higher third-quarter results, on Wednesday raised its fiscal 2025 adjusted earnings and margin growth outlook. The company further maintained sales view.

For the year, ADP now expects earnings per share growth of 9 percent to 10 percent, adjusted earnings per share growth of 8 percent to 9 percent, adjusted EBIT margin expansion of 40 to 50 basis points.

The company previously expected adjusted earnings per share growth of 7 percent to 9 percent and adjusted EBIT margin expansion of 30 to 50 basis points.

Further, the firm maintained fiscal 2025 consolidated outlook for revenue growth of 6 percent to 7 percent.

In the third quarter, ADP's profit increased from the same period last year and beat the Street estimates.

The company's bottom line totaled $1.249 billion, or $3.06 per share, compared with $1.184 billion, or $2.88 per share, last year.

Adjusted earnings were $1.249 billion or $3.06 per share for the period.

Analysts on average had expected the company to earn $2.97 per share. Analysts' estimates typically exclude special items.

The company's revenue for the period rose 5.7 percent to $5.553 billion from $5.253 billion last year. The Street expected $5.49 billion.

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