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ADP Sees Improved Outlook

Automatic Data Processing reported a 1-percent decline in revenue for the first quarter ended September 30. But that was better than expected and the payroll services company projected an improved outlook for the year ending June 30.

However, ADP expects a decline in the number of average work-site employees in the first three quarter this year, a figure not turning up until the fourth quarter.

Previously, ADP had forecast a revenue decline of 1 percent to 4 percent off for fiscal 2021. It now thinks that will range from a drop of 1 percent to a 1-percent rise in sales. It also said instead of seeing a 13-percent to 18-percent drop in earnings per share that will range between 3 percent to 7 percent.

That change reflected improvements during the first quarter.

CEO Carlos Rodriquez said a 2-percent growth in employer services new business bookings, “was significantly ahead of our expectations and marked a record Q1 performance.” He continud, "employment small businesses continued to show the most improvement, while large businesses actually showed some degradation as we exited the first quarter.”

Net income rose to $601 million for the most recently ended period, a 3-percent increase from $582.4 million. Revenue was reported at $3.47 billion, up from slightly less than $3.5 billion in last year’s corresponding period. 

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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