ROSELAND (dpa-AFX) - Automatic Data Processing Inc. (ADP) announced an updated fiscal 2015 guidance in anticipation of the spin-off of its Dealer Services business unit, to be named CDK Global, Inc. ADP will report results of operations of the former Dealer Services business as discontinued operations. As a result, the company revised its guidance for the current fiscal year ending June 30, 2015, and is now forecasting earnings per share from continuing operations on a comparable basis to grow 12% to 14% in fiscal 2015 over last fiscal year's restated $2.58 per share. Fiscal 2015 revenue growth forecast is unchanged and is expected to rise 7% to 8%.
ADP expects adjusted earnings per share in the range of $3.49-$3.55. Updated guidance for EPS from continuing operations is in the range of $2.87-$2.93. The company anticipates completing the $825 million share repurchase by June 30, 2015, depending on market conditions. Including $825 million of of share repurchases, the updated guidance for EPS from continuing operations is in the range of $2.89-$2.95.
Analysts polled by Thomson Reuters expect the company to report fiscal 2015 earnings per share of $3.52. Analysts' estimates typically exclude special items.
The company noted that its guidance includes a $0.02 benefit resulting from incremental share repurchases funded by the $825 million in dividend proceeds the company expects to receive from CDK Global as a result of the spin-off.
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