ROSELAND, N.J. (AP) — Payroll processing company Automatic Data Processing Inc. said Tuesday that its fiscal third-quarter net income rose 7 percent as the number of employees on our clients' payrolls increased and it added new business.
ADP earned $452.4 million, or 92 cents per share, in the three months ended March 31. That compared with $423.8 million, or 85 cents per share, in the 2011 quarter.
The results topped the 91 cents per share, on average, predicted by analysts, according to data provider FactSet.
Revenue rose 7 percent to $2.92 billion from $2.74 billion, meeting Wall Street's estimate.
The company said revenue in its employer services unit, which handles payroll services, climbed 7 percent. Revenue in its professional employer organization services unit, which provides human resources and employee benefits programs, rose 15 percent. Vehicle dealer services revenue increased 7 percent.
The Roseland, N.J. company maintained its guidance for fiscal 2012 earnings to climb 8 percent to 9 percent from $2.52 per share a year ago. This implies earnings of approximately $2.72 to $2.75 per share. Revenue is still anticipated to increase 7 percent to 9 percent from 2011's $9.88 billion, implying $10.57 billion to $10.77 billion.
Analysts, on average, expect full-year earnings of $2.74 per share, on revenue of $10.7 billion.
Last month, ADP said it completed its acquisition of the human resources subsidiary of SHPS Inc., an employee benefits administration company. Terms were not disclosed.
Shares of ADP were unchanged at $55.62 in morning trading.