ROSELAND, N.J. (AP) — Automatic Data Processing Inc. said its third-quarter net income rose 8.1 percent from the same quarter a year ago as more companies signed up for its payroll and human resources services.
Net income rose to $521.6 million, or $1.08 per share, in the quarter ending March 31, compared with $482.7 million, or 99 cents per share, a year ago. Revenue rose 6.8 percent to $3.32 billion from $3.11 billion. Excluding discontinued operations, the company earned $1.06 per share. Analysts expected earnings of $1.08 per share and revenue of $3.34 billion, according to FactSet.
For 2014, the company expects earnings of to rise 9 percent from $2.88 per share last year. It previously expected earnings to rise 8 percent to 10 percent. With its new guidance, that would mean earnings of about $3.14 per share. Analysts expected $3.17 per share.
It now expects 2014 revenue to grow 8 percent from a year ago. It previously expected growth between 7 percent and 8 percent. With revenue of $11.3 billion in 2013, that would mean revenue of $12.2 billion this year, in line with what analysts expect.
Shares of Roseland, N.J.-based ADP added 58 cents to $77.57 in midday trading. Its shares had fallen 4.7 percent so far this year through Tuesday's close.