2023-07-26 10:48:00 ET
Cloud-based human capital management solutions provider, Automatic Data Processing ( NASDAQ: ADP ) shows a 8% surge in Q4 topline revenue, taking it to $4.5B (9% growth seen on a constant currency basis).
Q4 Employer Services revenues increased 11%, and new business bookings increased 10%. PEO Services revenues increased 4%.
Net earnings increased 24% to $777M, and adjusted net earnings increased 25% to $781M. Adjusted EBIT increased 23% to $1B, representing an adjusted EBIT margin increase of 270 basis points in the quarter to 22.5%.
FY revenues were up 9% to $18B; 10% organic constant currency; and Employer Services new business bookings see a 10% surge to $1.9B. Net earnings increased 24% to $777M, and adjusted net earnings increased 25% to $781M.
Adjusted EBIT increased 23% to $1B, representing an adjusted EBIT margin increase of 270 basis points in the quarter to 22.5%.
Diluted EPS increased 25% to $1.87, and adjusted diluted EPS increased 26% to $1.89. More details for Q4 earnings are given in the company presentation .
The fiscal 2024 outlook includes revenue growth of 6% to 7%, adjusted EBIT margin expansion of 60 to 80 basis points, Diluted EPS growth of 10% to 12%; and adjusted diluted EPS growth of 10% to 12%. Employer Services services segment is expected to grow 7% to 8%, while PEO Services revenue expected to grow 3% to 5%.
Maria Black, President and CEO comments, "New business bookings were incredibly strong and Employer Services retention returned to a record level, underscoring our strong market position. As we look ahead, we are focused on expanding on our leadership with a simple set of priorities across our business – leading with best-in-class HCM technology, providing unmatched expertise and outsourcing solutions, and leveraging our global scale and reach to benefit our clients."
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Automatic Data Processing up 6% after Q4 earnings beat