Automatic Data Fiscal Q2 EPS Beats Views on Shy Revenues

Shares of Automatic Data Processing were sliding over 1% pre-market Wednesday after the company cut its FY17 revenue outlook and reported fiscal Q2 EPS that beat forecasts on shy revenues.

For Q2 ended Dec. 31, adjusted EPS was $0.87 per share, up from $0.72 per share a year earlier and higher than the $0.81 per share consensus compiled by Capital IQ. Revenues rose to $2.99 billion from $2.81 billion but were just below the $3.02 billion average estimate.

For FY17, the provider of human capital management solutions continues to expect adjusted EPS growth of 11% to 13% with revenues expected to grow 6%, down from a prior outlook for 7% to 8% growth.

By Stephen Holmes