ROSELAND – The Automated Data Processing Company (NASDAQ:) posted a modest beat on third-quarter earnings, with adjusted EPS of $2.88, beating analysts' estimates of $2.79. The company's revenue also saw a slight increase, reaching $5.25 billion, slightly above the consensus estimate of $5.23 billion.
The company's shares saw a slight decline of 1% after the earnings announcement, indicating a moderate market reaction. ADP's guidance for the coming periods expects an increase in adjusted EPS of 10% to 12% and revenue growth of 6% to 7%. Additionally, the company expects new bookings for employer services to rise 4% to 7%.
While the market response has been weak, the company's performance indicates a continued growth trajectory. ADP's third-quarter results reflect consistent execution of its business strategy, as evidenced by reported numbers that marginally exceeded analyst expectations. The company's guidance indicates 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,” the CEO said. “We continue to focus on innovation and providing exceptional service to our customers, which we believe will continue to drive our success.”
Investors and stakeholders will be watching closely to see if ADP is able to maintain growth momentum in line with its positive guidance for the coming quarters.
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