Automatic Data Processing slightly increases FY2023 earnings guidance after Q3 beat
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Automatic Data Processing (NASDAQ:ADP), known for its payroll processing services, nudged up the bottom end of its fiscal year 2023 adjusted EPS growth guidance after its Q3 results beat the average Wall Street consensus.
The company increased its guidance for FY 2023 adjusted EPS growth to 16%-17% from its previous range of 15%-17%. That implies FY2023 adjusted EPS of $8.13-$8.20, vs. $8.11 consensus. ADP stock slipped 0.3% in Wednesday early afternoon trading. 
FY2023 revenue growth outlook of 8%-9% was unchanged. Adjusted EBIT margin expansion of 125-150 basis points was also unchanged from guidance issued in January.
"Despite the ongoing macroeconomic uncertainty, we again delivered strong revenue growth, margin expansion, and EPS growth," said President and CEO Maria Black.
Adjusted EPS for its Q3 ended March 31, 2023 was $2.52, beating the $2.44 consensus, and up from $1.96 in FQ2 and $2.21 in Q3 2022.
Q3 total revenue of $4.93B, vs. $4.88B consensus, rose from $4.39B in the prior quarter and from $4.51B in the year-ago period.
Automatic Data Processing's (ADP) Q3 total expenses of $3.60B vs. $3.36B in Q2 2023 and $3.35B in Q3 2022.
By segment: Employer Services revenue increased 11% Y/Y to $3.34B and Professional Employer Organization (PEO) Services revenue rose 5% Y/Y to $1.59B. Employer Services earnings of $1.24B increased 14% Y/Y, while PEO Services earnings climbed 15% Y/Y to $261M.
Earlier, Automatic Data Processing (ADP) non-GAAP EPS of $2.52 beats by $0.08, revenue of $4.9B beats by $20M
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