Automatic Data Processing ( ADP) reported 10% revenue growth in the fiscal first quarter, and the business-services provider raised its earnings forecast for fiscal 2006.

Revenue rose to $2.05 billion from $1.85 billion in the year-ago quarter. ADP, based in Roseland, N.J., earned $220 million, or 38 cents a share. Last year the company earned $208.2 million, or 35 cents a share.

Analysts expected a profit of 35 cents and revenue of $2.02 billion for the quarter, according to Thomson First Call.

The first quarter included stock compensation expenses that reduced earnings by about 5 cents a share. For the full fiscal year, stock compensation costs will probably lower ADP's profit by around 19 cents a share, the company said.

ADP said fiscal 2006 earnings per share will rise 22% to 25% from the prior year, had stock compensation been expensed previously. The company said the forecast was higher than its past outlook. ADP confirmed its guidance that revenue will increase by a high-single-digit percent.

Shares of ADP were gaining $2.40, or 5.5%, to $45.95.