ADP beats results estimates on steady demand for payroll services
Jan 31 (Reuters) - Payroll processor Automatic Data Processing beat second-quarter revenue and profit expectations on Wednesday, driven by steady demand for its payroll software and employee management services.
A strong labor market coupled with subsiding inflation has boosted customer spending on payroll software and human capital management (HCM) solutions.
Automatic Data and Workday have also been beefing up their partnership to provide better payroll and compliance services to customers.
Shares of Paterson, New Jersey-based Automatic Data rose 1.4% in trading before the bell.
The company's employer services segment, which handles human resources outsourcing and employee management solutions, reported an 8% rise in revenue in the second quarter ended Dec. 31 to $3.13 billion from a year earlier.
Total revenue came in at $4.67 billion, compared with analysts' average estimate of $4.66 billion, according to LSEG data.
Adjusted earnings of $2.13 per share was also above Street estimate of $2.10. (Reporting by Priyanka.G in Bengaluru; Editing by Shinjini Ganguli)
