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Mar 31, 2021

ADP Q3 2021 Earnings Report

Reported a 1% increase in revenue and flat EPS.

Key Takeaways

ADP reported a 1% increase in revenues to $4.1 billion. Diluted earnings per share were flat at $1.90. The company is raising full year guidance for revenue, bookings, retention, and adjusted diluted EPS.

Revenues increased 1% to $4.1 billion.

Employer Services New Business Bookings increased 7%.

Net earnings decreased 1% to $811 million.

Diluted earnings per share flat at $1.90.

Total Revenue
$4.1B
Previous year: $4.05B
+1.3%
EPS
$1.89
Previous year: $1.92
-1.6%
Pays per control growth
7%
Previous year: 1.9%
+268.4%
Avg Paid PEO Employees
594K
Previous year: 595K
-0.2%
Paid PEO Employees (end)
595K
Previous year: 595K
+0.0%
Gross Profit
$1.72B
Previous year: $1.65B
+4.0%
Cash and Equivalents
$1.89B
Previous year: $1.71B
+10.9%
Total Assets
$54.4B
Previous year: $43.4B
+25.4%

ADP

ADP

ADP Revenue by Segment

Forward Guidance

ADP anticipates revenue growth of 2% to 3% and adjusted diluted EPS growth of flat to 1%.

Positive Outlook

  • Revenue growth of 2% to 3%
  • Adjusted EBIT margin decline of (75) to (50) basis points
  • Adjusted effective tax rate of 23.0%
  • Diluted EPS growth of 4% to 5%
  • Employer Services New Business Bookings growth of 20% to 25%

Challenges Ahead

  • Adjusted diluted EPS growth of flat to 1%
  • Employer Services revenue growth of about 1%
  • Employer Services margin decline of (75) to (50) basis points
  • Decrease in U.S. pays per control of (4)% to (3)%
  • PEO Services revenue growth of 5% to 6%

Revenue & Expenses

Visualization of income flow from segment revenue to net income