ADP forecasts robust fiscal 2024 revenue on new contract wins

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Key Points

July 26 (Reuters) - Payroll processor Automatic Data Processing (ADP.O) forecast annual revenue above market estimates on Wednesday, helped by strong demand for company services and new contract wins...

While mounting economic uncertainties have raised concerns over the outlook for the human resources industry, analysts say demand remains strong for companies such as ADP thanks to a stable labor market...

The company expects its revenue to grow between 6% and 7% in fiscal 2024, compared with analysts' expectations of a 5.8% increase, according to Refinitiv data...

The company's full-year adjusted earnings per share growth forecast of 10% to 12% was also above analysts' estimates of a 9% rise.. Shares of ADP were 1% higher in premarket trading..

The company's revenue rose 8% to $4.48 billion for the three months ended June 30, compared with estimates of $4.39 billion, driven by its employer services business, which provides human resource outsourcing and makes up 67% of total revenue this quarter...

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