ADP ® (Nasdaq: ADP) reported revenue growth of 7%, 6% organic, to $3.1 billion for the third fiscal quarter ended March 31, 2013, Carlos Rodriguez, president and chief executive officer, announced today. Pretax earnings and net earnings from continuing operations increased 6% and 7%, respectively, and diluted earnings per share from continuing operations of $0.99 increased 9% from $0.91 a year ago. Fiscal year-to-date through May 1, 2013 ADP acquired 7.1 million shares of its stock for treasury at a cost of $415 million. Cash and marketable securities were $1.8 billion at March 31, 2013.
- Revenues Rise 7%
- 6% Organic EPS from Continuing Operations
- Increase 9% Expects 6% – 7% Growth in Both Revenues and EPS from Continuing Operations
Fiscal 2013 Forecast
“Our fiscal 2013 forecasts assume no changes in the current economic environment. We are narrowing our guidance for total company revenue and earnings per share growth for the year. We continue to anticipate driving good pretax margins in the business segments, although we anticipate a decline in total ADP pretax margin. Our forecasts continue to be impacted by an expected lower average yield on the client funds portfolio due to continued low market interest rates. We anticipate an improvement in the effective tax rate of approximately 50 basis points from 34.5% compared with our prior forecast for a 30 basis point improvement. Our forecasts exclude the results of discontinued operations.