Automated Data Processing Inc. (ADP) concluded Monday trading with an increase of 2.20% to reach $169.89.
The professional services developer has gained increased more than 13 percent over the past month while the rise increases to 19.87 over the 6 month period. The positive numbers came on the heels of the US labor market condition which remained favorably increasing due to the pandemic.
Automated Data Processing offers software business solutions and outsourcing of professional services (personnel leasing) with more than 620,000 businesses from 104 countries currently attached to it. A wide variety of tools in the company’s product list include features from mobile apps for estimating small business taxes to effective platforms for human resources management, medical expenses, and payments.
Company’s financial stability primarily depends on the stability of the labor market. As the COVID-19 coronavirus resulted in a range of layoffs, suspensions and production cuts, the Automated Data Processing outlook was not very favorable, which impacted the company’s results. The labor market in the country is, however, starting to return to normal in recent months. The U.S. Labor Department last week released economic reports that showed the nation gained 638,000 non-farm workers in October. This figure was below the Dow Jones goal, but the data show that the economy is still recovering from the COVID-19 related problems.
Automatic Data Processing presented the results of the first quarter of fiscal year 2021 at the end of October. Non-GAAP earnings were $1.41 per share, with sales hitting $3.47 billion. On sales of $3.27 billion, Wall Street had an expectation of earnings per share of $0.98.
According to the Automated Data Processing outlook, revenue will be about the same as last year in the current fiscal year, ranging from -1% to +1%. It is estimated that adjusted earnings per share will be 3% to 7% lower year-on-year.