Earnings dropped to $310.1 million, off 1.8 percent from $315.8 million for the corresponding quarter a fiscal 2010. Revenue for the most recently ended period was $2.5 billion, up from just under $2.2 billion. While acquisitions helped results, the company also experienced organic growth. Employer services had 4 percent internal growth, as compared to a 2 percent decline a year ago. Dealer services, the hard-hit automotive sector, also had 4 percent internal growth, compared to a 9 percent drop.
ADP: 9 Percent Rev Growth for FY 2011
With its business showing a broad range of improvement, Automatic Data Processing is anticipating revenue growth of about 9 percent year-over-year for the year ending June 30. The company is also expecting about five percent growth in earnings per share, according to remarks made by CEO Gary Butler in the company's recent earnings conference call.
Butler said the company expects a 2 percent increase in its pays per control and client revenue retention improvement of about 50 basis points. The faster-growing PEO services sector will continue at a quicker clip than payroll, with revenue from that sector growing by about 15 percent.
