ADP fiscal 4Q net income falls 12 pct
ADP posts 12 pct drop in fiscal 4th-qtr net income on charges, lower interest revenue
ROSELAND, N.J. (AP) -- Automatic Data Processing Inc. said Thursday its fiscal fourth-quarter net income fell 12 percent, pulled down by acquisition-related expenses and lower interest revenue.
For the quarter ended June 30, ADP earned $227 million, or 47 cents per share, down from $258.4 million, or 52 cents per share, in the same quarter of 2012.
The recent quarter's results included 9 cents per share in impairment charges related to an acquisition. Excluding those, the company posted an adjusted profit of 56 cents per share.
Revenue rose 7 percent to $2.81 billion from $2.62 billion.
The profit fell a penny short of wall Street predictions, while the revenue matched them. Analysts, on average, expected a profit of 57 cents per share on $2.81 billion in revenue, according to FactSet.
Interest on funds held for clients fell 16 percent to $100.5 million, hurt by a lower average interest yield, partly offset by an increase in average client fund balances.
Employer services revenue increased 8 percent to $1.97 billion, helped by an increase in the number of employees on its clients' payrolls.
For the full fiscal year, ADP earned $1.41 billion, or $2.89 per share, down from $1.39 billion, or $2.82 per share, in fiscal 2012. Revenue rose to $11.31 billion from $10.62 billion.
The company said that as it enters fiscal 2014, the global economic recovery continues to be mixed. It projected revenue increases for the year at all of its businesses, but said it expects its interest on funds held for clients to fall between 10 percent and 12 percent for the year.
ADP said it expects its adjusted fiscal 2014 profit from continuing operations to rise between 8 percent and 10 percent from 2013 levels. Revenue is expected to increase 7 percent.
Based on the company's 2013 results, the projection implies a 2014 profit of between $3.12 and $3.18 per share and revenue of $12.21 billion. Analysts expect a profit of $3.17 per share on $12.13 billion in revenue.
Shares of Roseland, N.J.-based ADP fell 60 cents to $71.49 in morning trading.
