Automatic Data Processing's

(ADP) - Get Report

third-quarter earnings rose thanks to cost-cutting measures.

The computing services firm posted net income of $352.6 million, or 56 cents a share, up from $301 million, or 47 cents a share, in the year-ago period, beating the Thomson Financial/First Call consensus estimate of 55 cents.

Revenue for the quarter increased 1% from last year to $1.9 billion, in-line with analyst estimates.

The company said it has not yet seen the benefits of an economic recovery -- it expects its employer services to lag any recovery for several months -- but it continues to see earnings growth due to cost-cutting and management.

For 2002, ADP reiterated its guidance of 10% EPS growth over 2001's pro forma $1.59 a share. Analysts polled by First Call are currently expecting EPS of $1.75 for the year.