- Automatic Data Processing Inc ADP reported first-quarter FY22 revenue growth of 10% year-on-year to $3.83 billion, beating the consensus of $3.75 billion. The revenue rose 10% Y/Y on an organic constant currency basis.
- Employer Services revenues increased 8% Y/Y to $2.57 billion, and PEO Services revenues grew 15% Y/Y to $1.26 billion.
- Margin: Adjusted EBIT margin expanded 140 basis points to 23.9% as higher operating revenue more than offset the higher selling expenses and implementation costs.
- Non-GAAP EPS of $1.65 beat the consensus of $1.49.
- ADP generated $121.9 million in operating cash flow and held $1.6 billion in cash and equivalents.
- "This strong start to the fiscal year 2022 reflects improving demand across all of our offerings as more employers partner with ADP for their HCM solutions," CEO Carlos Rodriguez said.
- Outlook: ADP sees FY22 revenue of $16.06 billion - $16.21 billion above the analyst consensus of $16.02 billion.
- It sees non-GAAP EPS of $6.68 above the analyst consensus of $6.63.
- Price action: ADP shares closed higher by 1.44% at $221.95 on Wednesday.
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