Technology-based outsourcing solutions provider Automatic Data Processing Inc. (ADP) is scheduled to issue financial results for its first quarter before the market opens Wednesday, with analysts forecasting earnings of $0.50 per share on revenues of $2.05 billion. In the prior-year quarter, the company posted earnings from continuing operations of $0.54 per share on revenues of $2.18 billion.
The company's first-quarter results are expected to reflect the global financial crisis that coerced companies to shed more jobs worldwide in an effort to nip and tuck costs to live through the recession. Investors will be watching Automatic Data Processing results as it may signal business software & services stocks performance that are due to be released in the following days.
Automatic Data Processing, which serves about 570 thousand clients, offers the widest range of HR, payroll, tax and benefits administration solutions from a single source. The company also provides integrated computing solutions to auto, truck, motorcycle, marine and recreational vehicle dealers throughout the world.
For fiscal 2010, Automatic Data expects the severely negative economic conditions to continue. Automatic Data Processing sees comparatively worsening business metrics in the first half of fiscal 2010, with particularly tough year-over-year comparison for the first quarter.
Full-year net earnings from continuing operations, excluding favorable tax settlements, are expected to be $2.29 - $2.39 per share, while analysts expect $2.35 a share. Total revenues are projected to decline 1% - 4% year-over-year. Analysts estimate full-year revenues to be $8.73 billion.
For the preceding fourth quarter, the Roseland, New Jersey-based company reported net income of $352.8 million or $0.70 per share, higher than the $233.5 million or $0.45 per share earned in the year-ago quarter, aided by lower operating costs. Revenues dropped to $2.11 billion from $2.21 billion in the same period previous year.
Among Automatic Data Processing's rivals, Paychex Inc. (PAYX) posted lower profit for the first quarter that totaled $123.6 million or $0.34 per share, compared to $148.7 million or $0.41 per share in the year-ago quarter, as weak economic conditions, credit crisis in the financial markets and extremely low investment rates of return continued to hurt its results. Total revenue decreased 6% to $500.21 million from $534.09 million in the previous year.
Another industry peer, Fiserv Inc. (FISV) reported third-quarter net income of $115 million or $0.74 per share, an increase from $78 million or $0.48 per share in the previous year, reflecting lower expenses. However, revenues dropped to $992 million from $1.04 billion a year ago, hurt by weaker processing and services and product sales.
Automatic Data Processing shares, which have been trading between $31.67 and $41.27 in the past 52 weeks, closed Tuesday's trading session at $40.65, up 21 cents or 0.52%, on a volume of 4.64 million shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.