ADP beats second quarter revenue estimates on strong demand for payroll services

Automatic Data Processing

29/01/2025 12:48

Jan 29 (Reuters) - 
    Automatic Data Processing  ADP.O  beat second-quarter
revenue estimates on Wednesday due to increased demand for its
employee management and payroll services, driven by strong
spending from small and medium-sized businesses.
  
    ADP, which is one of the world's largest payroll processors
globally, benefited from stable employment activity and low
layoff rates in the U.S. labor market.
    Revenue at its PEO segment, which provides administration
outsourcing services, was $1.66 billion in the quarter ended
Dec. 31, compared with expectations of $1.64 billion, according
to data compiled by LSEG.
        The Roseland, New Jersey-based company 
    acquired WorkForce Software
     in October for around $1.2 billion in cash, in a bid to
stay ahead of competitors, as the industry shifts towards
mobile-friendly, cloud-based applications.
  
    ADP reported a second-quarter revenue increase of 8% to
$5.05 billion, compared with estimates of $4.97 billion.
    On an adjusted basis, it earned $2.35 per share in the
second quarter, compared with estimates of $2.29.
    Shares of the payroll and human capital management company
rose 1.2% before the bell.
    

 (Reporting by Kritika Lamba in Bengaluru; Editing by Tasim
Zahid)
 ((Kritika.Lamba@thomsonreuters.com;))