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Automatic Data Processing (ADP) Beats on Q3 Earnings

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Founded in 1949, New Jersey based-Automatic Data Processing Inc. (ADP - Free Report) is one of the world’s leading providers of human capital management solutions and integrated computing solutions to vehicle dealers. It serves approximately 637K clients across 125 nations.

The company reports in three business segments – Employer Services, Professional Employer Organization (PEO) Services and Dealer Services.

The Employer Services segment includes human resource information, payroll processing, human resources tax and compliance management, and benefit administration products and services.

The Professional Employer Organization (PEO) Services segment provides small and medium-sized businesses with employment administration outsourcing solutions, including payroll, payroll tax filing, HR guidance, 401(k) plan administration, benefits administration, compliance services, health and workers' compensation coverage, and other supplemental benefits for the employees.
 

 

The Dealer Services segment provides integrated dealer management systems, digital marketing solutions and other business management solutions to the automotive, heavy truck, motorcycle, marine, recreational vehicle (RV), and heavy equipment retailers, distributors, and manufacturers.

Zacks Rank: Currently, ADP has a Zacks Rank #3 (Hold) but that could change following its third-quarter fiscal 2017 earnings report which has just released.

You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

We have highlighted some of the key details from the just-released announcement below:

Earnings: ADP’s adjusted earnings from continuing operations came in at $1.29 per share, beating the Zacks Consensus Estimate of $1.23. Including tax benefit of 2 cents, earnings were $1.31 per share, which improved 12% on a year-over-year basis.

Revenues: Revenues of $3.41 billion missed the Zacks Consensus Estimate of $3.43 billion but grew 5% on a year-over-year basis.

Key Stats: New business bookings declined 7% on a year-over-year basis in the reported quarter.

Stock Price: Shares prices did not show any movement in the pre-market trading session.

Check back later for our full write up on this ADP earnings report later!

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