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Dec 31, 2023
ADP Q2 2024 Earnings Report
Reported a revenue increase of 6% and EPS increase of 9% compared to last year's second quarter.
Key Takeaways
ADP reported a strong second quarter with a 6% increase in revenue, reaching $4.7 billion, and a 9% increase in diluted EPS to $2.13. The company's focus on HCM products and client satisfaction drove these results, with adjusted EBIT increasing 7% to $1.1 billion.
Revenues increased 6% to $4.7 billion; organic constant currency also increased 6%.
Net earnings increased 8% to $878 million, and adjusted net earnings increased 8% to $881 million.
Diluted earnings per share (EPS) increased 9% to $2.13; adjusted diluted EPS increased 9% to $2.13.
Employer Services revenues increased 8%, while PEO Services revenues increased 3%.
ADP
ADP
ADP Revenue by Segment
Revenue by Segment
Employer Services Revenue
CapyFin.comPEO Services Revenue
CapyFin.com Forward Guidance
ADP anticipates revenue growth of 6% to 7% and adjusted diluted EPS growth of 10% to 12% for fiscal year 2024.
Positive Outlook
- Revenue growth of 6% to 7%
- Adjusted EBIT margin expansion of 60 to 70 basis points
- Adjusted effective tax rate of about 23%
- Diluted EPS growth of 10% to 12%
- Adjusted diluted EPS growth of 10% to 12%
Challenges Ahead
- PEO Services margin down 80 to 100 basis points
Revenue & Expenses
Visualization of income flow from segment revenue to net income