Summary
Automatic Data Processing, Inc. (ADP) reported strong financial performance for the fiscal year ended June 30, 2017. The company experienced revenue growth of 6%, driven by increases in its Employer Services and PEO Services segments, reflecting successful new business bookings and a healthy client retention rate. ADP demonstrated solid profitability, with net earnings from continuing operations increasing by 16% and diluted earnings per share rising by 18% year-over-year. The company also continued its commitment to shareholder returns, repurchasing approximately $1.3 billion in shares and increasing dividends for the 42nd consecutive year. Strategic initiatives, including investments in cloud-based HCM solutions and the acquisition of The Marcus Buckingham Company, position ADP for continued growth in the human capital management market.
Financial Highlights
53 data points| Revenue | $12.37B |
| Cost of Revenue | $7.24B |
| Gross Profit | $5.13B |
| SG&A Expenses | $2.77B |
| Operating Expenses | $10.10B |
| Interest Expense | $80.00M |
| Net Income | $1.79B |
| EPS (Basic) | $3.99 |
| EPS (Diluted) | $3.97 |
| Shares Outstanding (Basic) | 447.80M |
| Shares Outstanding (Diluted) | 450.30M |
Key Highlights
- 1Revenue increased by 6% to $12,379.8 million in fiscal year 2017.
- 2Net earnings from continuing operations grew by 16% to $1,733.4 million.
- 3Diluted earnings per share from continuing operations increased by 18% to $3.85.
- 4Worldwide new business bookings declined 5% in fiscal 2017, primarily due to a strong prior year driven by Affordable Care Act (ACA) compliance solutions.
- 5Client revenue retention for Employer Services decreased by 50 basis points to 90.0%, attributed to legacy platforms and the loss of a large client.
- 6ADP returned $2.3 billion to shareholders through share repurchases ($1.3 billion) and dividends ($1 billion).
- 7The company acquired The Marcus Buckingham Company to enhance its talent management capabilities.