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UPDATE 1-Payroll processor ADP's results beat estimates
February 5, 2014 / 1:40 PM / 4 years ago

UPDATE 1-Payroll processor ADP's results beat estimates

* 2nd-quarter EPS from cont. ops 78 cents vs est 77 cents

* Revenue rises 9 pct to $2.98 bln vs est $2.94 bln

Feb 5 (Reuters) - Automatic Data Processing Inc reported better-than-expected second-quarter results due to higher revenue from its payroll-processing business as the U.S. job market recovers.

U.S. employers hired more workers than expected in November and the jobless rate hit a five-year low of 7.0 percent following a similarly robust growth in October.

ADP’s net earnings from continuing operations rose 8 percent to $377 million, or 78 cents per share, in the quarter ended Dec. 31, from a year earlier.

Total revenue rose about 9 percent to $2.98 billion.

Analysts had expected earnings of 77 cents per share on revenue of $2.94 billion, according to Thomson Reuters I/B/E/S.

The company said number of employees on its clients’ payrolls rose 2.9 percent in the United States in the quarter on a like-for-like basis.

Revenue from its employer services unit rose 9 percent to $2.09 billion.

ADP also processes accounting and inventory for auto dealers and provides software and networking products for companies.

Roseland, New Jersey-based ADP’s shares closed at $74.95 on the Nasdaq on Tuesday. The stock gained 26 percent in the 12 months ended Dec. 31.

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