Business outsourcing provider Automatic Data Processing (ADP) reported increased profit for its second quarter, beating estimates on Tuesday.
The Roseland, NJ based company reported second quarter earnings of $390.9 million, or 80 cents per share, up 4% from $375 million, or 76 cents per share last year. Excluding special items, earnings were 72 cents per share, up from 67 cents per share last year, and beat analysts estimate of 71 cents per share.
Revenue increased to $2.75 billion, from $2.57 billion last year. Analysts expected to see $2.72 billion in revenue.
Looking forward, the company expects to see revenue and earnings growth in the range of 5-7%. Analysts expect to see EPS of $2.91 per share with $11.30 billion in revenue.
Automatic Data Processing shares were mostly flat during Tuesday morning trading. The stock has increased 7% in the past year.
The Bottom Line
Shares of ADP currently offer a 2.91% dividend yield, based on Tuesday morning’s price of $59.80 and the company’s annualized dividend payout of $1.74 per share.
Automatic Data Processing (ADP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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