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EPS from Continuing Operations Increase 9%Narrows Fiscal 2013 Revenue and EPS GuidanceExpects 6% - 7% Growth in Both Revenues and EPS from Continuing Operations
ROSELAND, N.J., May 2, 2013 (GLOBE NEWSWIRE) -- ADP
® (Nasdaq:ADP) reported revenue growth of 7%, 6% organic, to $3.1 billion for the third fiscal quarter ended March 31, 2013, Carlos Rodriguez, president and chief executive officer, announced today. Pretax earnings and net earnings from continuing operations increased 6% and 7%, respectively, and diluted earnings per share from continuing operations of $0.99 increased 9% from $0.91 a year ago. Fiscal year-to-date through May 1, 2013 ADP acquired 7.1 million shares of its stock for treasury at a cost of $415 million. Cash and marketable securities were $1.8 billion at March 31, 2013.
Third Quarter Discussion
Commenting on the results, Mr. Rodriguez said, "I am pleased with ADP's third quarter results. Combined worldwide new business bookings for Employer Services and PEO Services grew 9%, and worldwide client revenue retention improved during this critical third quarter period. Our business segments continued to perform well driving good revenue growth and strong pretax margin expansion.
"As anticipated, high-margin client interest revenues declined from a year ago due to a lower yield on the client funds portfolio, partially offset by higher client funds balances, and negatively impacted total revenue growth one percentage point. This decline negatively impacted growth in both pretax earnings and diluted earnings per share from continuing operations 3%. Additionally, pretax margin was negatively impacted 100 basis points, offsetting the strong pretax margin expansion in the business segments. Fiscal 2012 acquisitions contributed one percentage point to total revenue growth and negatively impacted pretax margins 30 basis points.