Summary
Automatic Data Processing, Inc. (ADP) reported solid financial results for the nine months ended March 31, 2010, with net earnings from continuing operations increasing by 2% to $999.7 million, or $1.98 per diluted share, up from $977.9 million, or $1.93 per diluted share, in the prior year period. For the third quarter of fiscal year 2010, net earnings from continuing operations were largely flat year-over-year at $401.6 million ($0.79 diluted EPS), compared to $402.1 million ($0.80 diluted EPS) in the prior year quarter, indicating a slight sequential slowdown. The company demonstrated revenue growth in its PEO Services segment (+15% for the quarter and +10% year-to-date) and Employer Services segment (+1% for the quarter), while Dealer Services experienced a revenue decline (-3% for the quarter and -4% year-to-date). Total revenues for the nine months remained stable at $6.737 billion, but increased by 3% to $2.443 billion for the third quarter, driven by Employer and PEO Services. The company's strong operating cash flow of $1.287 billion for the nine months underscores its financial health.
Financial Highlights
30 data points| Revenue | $2.44B |
| Cost of Revenue | $1.33B |
| Gross Profit | $1.11B |
| SG&A Expenses | $504.90M |
| Operating Expenses | $1.84B |
| Interest Expense | $1.20M |
| Net Income | $403.60M |
| EPS (Basic) | $0.80 |
| EPS (Diluted) | $0.80 |
| Shares Outstanding (Basic) | 502.40M |
| Shares Outstanding (Diluted) | 505.50M |
Key Highlights
- 1Net earnings from continuing operations increased by 2% year-over-year for the nine months ended March 31, 2010, reaching $999.7 million ($1.98 diluted EPS).
- 2Third quarter net earnings from continuing operations were flat year-over-year at $401.6 million ($0.79 diluted EPS), showing a slight sequential deceleration.
- 3Total revenues for the nine months ended March 31, 2010, were stable at $6.737 billion, but increased by 3% to $2.443 billion for the third quarter, driven by Employer and PEO Services growth.
- 4PEO Services demonstrated robust revenue growth of 15% in the third quarter and 10% year-to-date, indicating strong performance in this segment.
- 5Employer Services also showed positive revenue growth of 1% in the third quarter and a marginal decline of 1% year-to-date.
- 6Dealer Services experienced a revenue decline of 3% in the third quarter and 4% year-to-date, reflecting ongoing challenges in the automotive sector.
- 7Operating cash flow remained strong, with $1.287 billion generated in the first nine months of the fiscal year, underscoring the company's ability to generate cash from its operations.