NEW YORK (Reuters) — Automatic Data Processing Inc's quarterly profit rose five per cent to $423.8 million, as expected, as its customers increased spending on payroll technology and the company's acquisitions boosted revenue.
The world's largest payroll processing company said on Monday revenue grew 12 per cent to US$2.74 billion, slightly above expectations. Revenue grew seven per cent on an organic basis, not including the impact of acquisitions.
Chief executive Gary Butler in the earnings release cited ''strong new business sales growth'' in ADP's employer services units, and ``very strong'' client revenue retention.
ADP raised its revenue forecast for the 2011 fiscal year and said it now expects to revenue to grow about 10 per cent, instead of nine per cent, including the impact of acquisitions during the year.
U.S. businesses hired slightly more employees during the quarter, according to ADP, which said the number of employees on its U.S. customers' payrolls grew by 2.7 per cent.
ADP earned 85 cents per share for its fiscal third quarter ended March 31, which met analysts' average expectations, according to Thomson Reuters I/B/E/S.
That compared with year-ago profit of $403.6 million, or 80 cents per share.
ADP shares edged down four cents to $54.66 in after-hours trade.