ROSELAND, N.J. (AP) — Automatic Data Processing Inc.'s fiscal third-quarter net income rose 7 percent, buoyed by a slight rise in the number of workers on clients' payrolls.
The quarterly performance of the world's biggest payroll processor topped analysts' estimates, and the company raised the low end of its forecasts for 2013 earnings and revenue.
ADP earned $482.7 million, or 99 cents per share, for the period ended March 31. A year earlier, the Roseland, N.J., company earned $452.4 million, or 92 cents per share.
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Analysts polled by FactSet expected earnings of 98 cents per share
ADP provides payroll processing and benefits administration for companies. Its profits and revenue are heavily dependent on the economy and the health of the job market.
Revenue increased 7 percent to $3.11 billion from $2.91 billion, in line with Wall Street's forecast.
Employer services revenue climbed 7 percent, as the number of workers on clients' payrolls in the U.S. rose 2.7 percent on a comparable basis. Professional employer organization services and dealer services revenue also increased.
ADP now foresees 2013 earnings per share from continuing operations and revenue will each climb 6 percent to 7 percent. The company previously predicted 5 percent to 7 percent growth for both.
Based on 2012′s earnings from continuing operations of $2.72 per share, this implies about $2.89 to $2.91 per share. Based on the prior year's revenue of $10.67 billion, this projects 2013 revenue of $11.31 billion to $11.42 billion.
Analysts expect earnings of $2.90 per share on revenue of $11.31 billion.
ADP's stock added 85 cents to $68.24 in morning trading.
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