Automatic Data Processing Lowers Revenue, Adjusted Earnings Outlook for Fiscal Year
29 April 2020 - 10:02PM
Dow Jones News
By Allison Prang
Automatic Data Processing Inc. lowered its expectations for
revenue and adjusted earnings for this fiscal year.
The company said it expects revenue to increase 3% and for
adjusted earnings to rise between 4% and 7%, a downgrade from the
company's previous guidance in January for a revenue increase of 6%
and a rise in adjusted earnings of between 12% and 14%.
ADP added that it is expecting its adjusted earnings before
interest and taxes margin to be between down 25 basis points and up
25 basis points. The company was previously expecting this to rise
between 100 basis points and 125 basis points. The company also
lowered its guidance for its adjusted effective tax rate to 22.9%,
down from 23.2%.
ADP lowered its expectations for revenue growth in its employer
services and PEO services segments. It added that it expects
average client funds balances to rise 1%, having previously guided
for them to rise 4%.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
April 29, 2020 07:47 ET (11:47 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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