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ADP fiscal 1Q net income rises 9 percent

The Associated Press

NEWS: Automatic Data Processing Inc. said Wednesday that its fiscal first-quarter net income rose 9 percent, thanks to an increase in the number of workers on clients' payrolls.

DETAILS: The Roseland, N.J., company said the number of employees on its clients' payrolls rose 2.6 percent in the quarter on an adjusted basis, while client retention "remained strong."

ADP provides payroll management and other services for about 620,000 clients.

NUMBERS: Net income rose to $328.6 million, or 68 cents per share, in the quarter, up from $305.3, or 63 cents per share, a year ago.

Revenue rose 8 percent to $2.84 billion from $2.64 billion.

Analysts expected earnings of 66 cents per share and revenue of $2.81 billion, according to FactSet.

FUTURE: For fiscal 2014, ADP said that it expects earnings per share from continuing operations to rise to 8 percent to 10 percent from $2.89 per share in the same quarter a year ago. That implies earnings between $3.12 and $3.18 per share. That's in line with the $3.16 per share analysts expected.

The company expects revenue to rise 7 percent. Based on revenue of $11.31 billion in 2013, that would mean revenue at about $12.1 billion, in line with what analysts expected.

STOCK: Down $1.74, or 2.3 percent, to $74.61 in morning trading.