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Automatic Data Processing has increased its forecast for revenue growth for itGary Butler s year based on strong improvement in important metrics for its third quarter ended March 31. The company increased its forecast to 9-percent-to-10-percent growth from the prior estimate of a 7-percent-to-8-percent increase for the year ending June 30.

CEO Gary Butler cited a sharp improvement in client retention levels as one of the key factors in adjusting the outlook. "The quarter's increase of almost 200 basis points puts us on track this fiscal year to actually exceed the record retention levels that we achieved in fiscal 2008," he said in this week's earnings webcast.

ADP registered a 5-percent increase in net income on 7 percent rise in revenue. Net income was $423.8 million for the most recently ended period, up fromĀ $403.6 million. Third-quarter revenue reached $2.74 billion, compared to $2.44 billion in last year's corresponding period. The company noted the increases stemmed from better-than-anticipated wage growth, higher net pay and pays per control.

Excluding acquisitions, revenue from employer services, the payroll side of ADP's business, is expected to riseĀ 5 percent to 6 percent, an increase of the prior forecast of roughly 5-percent growth. Including acquisitions, growth is expected to hit about 7 percent.

Last modified on Sunday, 02 June 2013
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