Payroll processor ADP forecasts full-year results below estimates
(Reuters) - Payroll processor Automatic Data Processing Inc (ADP.O) forecast full-year results below analysts' estimates after reporting lower-than-expected quarterly earnings as expenses rose.
ADP said it expects earnings per share to increase by 8-10 percent in the year ending June 2014. This equates to earnings of $3.12 to $3.18 per share.
The company expects revenue to grow about 7 percent to $12.10 billion.
Analysts on average were expecting earnings of $3.18 per share on revenue of $12.13 billion, according to Thomson Reuters I/B/E/S.
"I remain cautious as economic growth in the U.S. continues to lag historic levels, and the economic landscape across Continental Europe is still soft," Chief Executive Carlos Rodriguez said in a statement.
Net earnings from continuing operations fell to $227 million, or 47 cents per share, in the quarter ended June from $256.2 million, or 52 cents per share, a year earlier.
On an adjusted basis, the company earned 55 cents per share from continuing operations.
Total revenue climbed 7 percent to $2.81 billion, helped by an improving U.S. jobs market.
Analysts had expected the company to earn 57 cents per share on revenue of $2.81 billion.
Total expenses rose about 9 percent to $2.47 billion.
ADP shares, which have gained about 7 percent in the last three months, closed at $72.09 on Wednesday on the Nasdaq.
(Reporting by Ashutosh Pandey in Bangalore; Editing by Joyjeet Das)
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