ADP beats results estimates on steady demand for payroll services

Automatic Data Processing

31/01/2024 13:39

Jan 31 (Reuters) - Payroll processor Automatic Data
Processing  ADP.O  beat second-quarter revenue and profit
expectations on Wednesday, driven by steady demand for its
payroll software and employee management services. 
    A strong labor market coupled with subsiding inflation has
boosted customer spending on payroll software and human capital
management (HCM) solutions. 
    Automatic Data and Workday  WDAY.O  have also been beefing
up their partnership to provide better payroll and compliance
services to customers.
    Shares of Paterson, New Jersey-based Automatic Data rose
1.4% in trading before the bell.
    The company's employer services segment, which handles human
resources outsourcing and employee management solutions,
reported an 8% rise in revenue in the second quarter ended Dec.
31 to $3.13 billion from a year earlier.
    Total revenue came in at $4.67 billion, compared with
analysts' average estimate of $4.66 billion, according to LSEG
data.
    Adjusted earnings of $2.13 per share was also above Street
estimate of $2.10. 

 (Reporting by Priyanka.G in Bengaluru; Editing by Shinjini
Ganguli)
 ((Priyanka.G@thomsonreuters.com;))