Stock Monitor: eGain Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 14, 2018 / Active-Investors.com has just released a free earnings report on Automatic Data Processing, Inc. (NASDAQ: ADP) ("ADP"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ADP. ADP posted its second quarter fiscal 2018 (Q2 FY18) financial results on January 31, 2018. The leading business process outsourcing providers' revenue and earnings surpassed market expectations. In January 2018, ADP acquired WorkMarket, a leader in cloud-based freelance management. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for eGain Corporation (NASDAQ: EGAN), which also belongs to the Technology sector as the Company Automatic Data Processing. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Automatic Data Processing most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=ADP
Earnings Highlights and Summary
During the second quarter of the fiscal year 2018, ADP posted net sales of $3.24 billion compared to $2.99 billion in Q2 FY17, reflecting an increase of 8.31%. The upside was driven by increase in the segment's revenue. Revenue numbers beat analysts' estimates of $3.18 billion.
The Company's cost of revenues was $1.95 billion in Q2 FY18 compared to $1.77 billion in Q2 FY17, increasing 10.12% on a y-o-y basis. ADP's selling, general, and administrative (SG&A) expenses amounted to $717.20 million in the reported quarter compared to $640.80 million in Q2 FY17, increasing 11.92% on a y-o-y basis. The Company's operating income was $565.70 million in Q2 FY18, compared to $786.20 million in Q2 FY17, decreasing 28.05% on a y-o-y basis.
ADP's net income was $467.50 million in the reported quarter compared to net income of $510.90 million in Q2 FY17, decreasing 8.49% on a y-o-y basis. The Company's earnings per share (EPS) were $1.05 in Q2 FY18 compared to of $1.13 in the second quarter of the previous fiscal year, decreasing 7.08% on a y-o-y basis. The decline was attributed to the recent enactment of the Tax Cuts and Jobs Act. Adjusted earnings of the Company were $0.99 in the reported quarter compared to $0.87 in Q2 FY17, reflecting an increase of 13.79% on a y-o-y basis. Earnings beat analysts' estimates of $0.89.
Segment Details
ADP has three business segments, namely: (i) Employer Services, (ii) PEO Services, and (iii) Other.
Revenues from Employer Services segment increased 5.56% to $2.44 billion in Q2 FY18 compared to $2.31 billion in Q2 FY17. The segment's operating income was $706.40 million in the reported quarter compared to $681.10 million in Q2 FY17, increasing 3.71% on a y-o-y basis.
Revenues from PEO Services segment increased 14.87% to $945.30 million in Q2 FY18 compared to $822.90 million in Q2 FY17. The segment's operating income was $128.20 million in the reported quarter compared to $114.50 million in Q2 FY17, increasing 11.97% on a y-o-y basis.
Negative revenue from Other segment was $147.50 million in Q2 FY18 compared to $144.90 million Q2 FY17. The segment's operating income was $268.90 million in the reported quarter compared to $9.40 million in Q2 FY17.
Cash Matters
ADP had cash and cash equivalents of $13.86 billion as on December 31, 2017, compared to $11.72 billion as on December 31, 2016. The Company's cash inflow from operating activities was $675.10 million in Q2 FY18 compared to $841.10 million in Q2 FY17. Free cash flow was $258.00 million in the reported quarter compared to $224.00 million in Q2 FY17.
ADP's Board of Directors declared a regular quarterly cash dividend of $0.63 per share, payable on April 01, 2018, to shareholders of record on March 09, 2018.
Outlook
For the fiscal year 2018, ADP expects sales growth to be in the range 7.00% to 8.00%, and EPS to increase by 8.00% to 9.00%. Adjusted EPS is projected to increase by 12.00% to 13.00%.
Stock Performance Snapshot
February 13, 2018 - At Tuesday's closing bell, Automatic Data Processing's stock was marginally up 0.15%, ending the trading session at $111.82.
Volume traded for the day: 1.29 million shares.
Stock performance in the last three-month - up 0.66%; previous six-month period - up 1.94%; and past twelve-month period - up 13.43%
After yesterday's close, Automatic Data Processing's market cap was at $48.18 billion.
Price to Earnings (P/E) ratio was at 28.98.
The stock has a dividend yield of 2.25%.
The stock is part of the Technology sector, categorized under the Business Software & Services industry. This sector was up 0.2% at the end of the session.
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