Automatic Data Processing raises revenue forecast after beating second quarter estimates
Automatic Data Processing beat second quarter estimates for revenue and earnings while raising its annual growth outlook. The firm expects six percent revenue growth.
Insights:
Automatic Data Processing, Inc. reported second-quarter revenue of $5.36 billion, surpassing the $5.34 billion average estimate from analysts according to data compiled by LSEG. The company also reported an adjusted profit per share of $2.62 for the quarter, which exceeded the analyst estimate of $2.57. Following these results, the firm lifted its annual revenue forecast and now expects annual revenue to grow by about 6%, representing the top end of its prior guidance range of 5% to 6%.
The updated outlook and quarterly performance indicate a resilient demand for the company’s payroll and human resources services. A key operational metric, the US 
USpay-per-control for the second quarter, rose by 1% compared to a year earlier. This growth rate remains consistent with the levels reported in the previous three quarters.
USpay-per-control for the second quarter, rose by 1% compared to a year earlier. This growth rate remains consistent with the levels reported in the previous three quarters.
