News
James B. Bell
- July 31, 2023
By Rob Curran
Automatic Data Processing (ADP), a leading payroll-services company, has expressed confidence in the U.S. jobs market by forecasting strong earnings and revenue growth for its fiscal year ending in June 2024.
Earnings Growth
ADP is targeting a growth in earnings per share (EPS) between 10% and 12% for fiscal 2024. Based on their net income of $8.21 per share for the previous year, this translates to earnings between $9.03 and $9.20 per share.
On an adjusted basis, ADP also expects earnings growth between 10% and 12% from the fiscal 2023 level of $8.23 per share.
Revenue Growth
ADP forecasts an annual revenue growth range of 6% to 7%, from $18 billion for the year ended June 30, resulting in revenue between $19.08 billion and $19.26 billion.
Within the company, the employer services unit is expected to experience revenue growth between 7% and 8%, while the PEO Services unit anticipates revenue growth between 3% and 5%.
Margins
ADP projects growth in adjusted earnings before interest and taxes margins, with an estimated range of 60 to 80 basis points.
PREVIOUS POST
Busy Week Ahead for Second-Quarter Earnings
NEXT POST
Mercedes-Benz Group to Report Q2 Results
Related Articles
Keysight Technologies Facing Challenges in Q3
Shares of Keysight Technologies decline as company faces challenges in Electronic Industrial Solutions Group and Asian region. Demand for wafer-test solutions s...
U.K. House Prices Experience Largest Decline in 14 Years
In July, U.K. house prices saw the biggest decline in 14 years, as rising interest rates and mortgage payments impact the housing market. Transactions also decr...
Galera Therapeutics Sees Sharp Decline in Share Price
Galera Therapeutics' stock drops 82% after FDA rejects drug application. Company plans workforce reduction and focuses on ongoing trials to regain momentum.