Automatic Data Processing (ADP) Beats on Q2 Earnings

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Founded in 1949, New Jersey based- Automatic Data Processing Inc.ADP is one of the world's leading providers of human capital management solutions and integrated computing solutions to vehicle dealers. It serves approximately 637K clients across 125 nations.

The company reports in three business segments - Employer Services, Professional Employer Organization (PEO) Services and Dealer Services.

The Employer Services segment includes human resource information, payroll processing, human resources tax and compliance management, and benefit administration products and services.

On Nov 28, 2016, ADP completed the sale of its Consumer Health Spending Account (CHSA) and Consolidated Omnibus Reconciliation Act (COBRA) businesses for a pre-tax gain of $205 million

Automatic Data Processing, Inc. Price

Automatic Data Processing, Inc. Price | Automatic Data Processing, Inc. Quote

The Professional Employer Organization (PEO) Services segment provides small and medium-sized businesses with employment administration outsourcing solutions, including payroll, payroll tax filing, HR guidance, 401(k) plan administration, benefits administration, compliance services, health and workers' compensation coverage, and other supplemental benefits for the employees.

The Dealer Services segment provides integrated dealer management systems, digital marketing solutions and other business management solutions to the automotive, heavy truck, motorcycle, marine, recreational vehicle (RV), and heavy equipment retailers, distributors, and manufacturers.

Zacks Rank : Currently, ADP has a Zacks Rank #2 (Buy) but that could change following its second-quarter fiscal 2017 earnings report which has just released.

We have highlighted some of the key details from the just-released announcement below:

Earnings : ADP's adjusted earnings from continuing operations came in at $1.13 a share, beating the Zacks Consensus Estimate of 81 cents. Earnings also improved 52.7% year over year.

Revenues : Revenues of almost $2.99 billion missed the Zacks Consensus Estimate of $3.02 billion but grew 6.4% on a year over year basis.

Key Stats : New business bookings declined 5% on a year-over-year basis in the reported quarter.

Stock Price : Shares price is down 1.23% in the pre-market trading session.

Check back later for our full write up on this ADP earnings report later!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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