ADP Q3 2022 Earnings Report
Key Takeaways
ADP reported a 10% increase in revenues to $4.5 billion, a 15% increase in net earnings to $929 million, and a 17% increase in adjusted diluted EPS to $2.21. The company also raised its fiscal year 2022 guidance due to strong momentum across the business.
Revenues increased 10% compared to last year's third quarter to $4.5 billion.
Net earnings increased 15% to $929 million, and adjusted net earnings increased 15% to $930 million.
Adjusted EBIT increased 12% to $1.2 billion, and adjusted EBIT margin increased 50 basis points to 26.8%.
Diluted earnings per share increased 16% to $2.21, and adjusted diluted EPS increased 17% to $2.21.
ADP
ADP
ADP Revenue by Segment
Forward Guidance
ADP provided fiscal year 2022 outlook, including revenue growth of 9% to 10%, adjusted EBIT margin expansion of 75 to 100 basis points, and adjusted diluted EPS growth of 15% to 17%.
Positive Outlook
- Revenue growth of 9% to 10%
- Adjusted EBIT margin expansion of 75 to 100 basis points
- Adjusted effective tax rate of approximately 22.5%
- Diluted EPS growth of 14% to 16%
- Adjusted diluted EPS growth of 15% to 17%
Revenue & Expenses
Visualization of income flow from segment revenue to net income