ADP's 2nd-quarter net income falls 4 percent
Automatic Data Processing Inc. said Wednesday that its second-quarter net income was down 4 percent from a year ago, when the company benefited from operations it no longer owns.
Net income fell to $377 million, or 78 cents per share, in the three months that ended on Dec. 31. That compares with net income of $391 million, or 80 cents per share, in the same period a year ago. Counting only continuing operations, profit rose 7 percent.
Revenue rose 9 percent to $2.98 billion from $2.75 billion. ADP said revenue from its employer services unit rose 9 percent to $2.1 billion as the number of employees on its clients' payrolls grew.
Analysts expected earnings of 77 cents per share and revenue of $2.94 billion, according to FactSet.
ADP raised its revenue outlook for the year slightly, expecting sales to rise 7 to 8 percent from $11.31 billion in fiscal 2013. That suggests sales of $12.1 billion and $12.21. Analysts predict $12.14 billion. The company maintained its earnings guidance for the fiscal year that runs through June.
Shares fell $1.53, or 2 percent, to $73.42 in afternoon trading.