Research Desk Line-up: Citrix Systems Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 9, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Automatic Data Processing, Inc. (NASDAQ: ADP) ("ADP"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ADP, following the Company's disclosure of its fourth quarter and fiscal 2017 results on July 27, 2017. The payroll and human resources Company's earnings declined on a y-o-y basis.ADP also provided outlook for FY18. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Business Software & Services industry. Pro-TD has currently selected Citrix Systems, Inc. (NASDAQ: CTXS) for due-diligence and potential coverage as the Company reported on August 02, 2017, its financial results for Q2 FY17 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Citrix Systems when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ADP; also brushing on CTXS. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the three months ended June 30, 2017, ADP's revenues grew 6% to $3.06 billion compared to $2.90 billion in Q2 2016. The Company's revenue numbers exceeded analysts' estimates of $3.05 billion. For the year, ADP's revenues grew 6% to $12.4 billion.

ADP's earnings from continuing operations before income tax declined 9% to $388.4 million on a y-o-y basis. The Company's adjusted earnings before interest and taxes (EBIT) margin fell approximately 240 basis points to 14.3% in the reported quarter as ADP maintained its investments in product, sales, and service including dual operation costs related to the Service Alignment Initiative.

For Q4 FY17, ADP's net earnings from continuing operations totaled $265.8 million, or $0.59 per diluted share, compared to net earnings of $282.0 million, or $0.622 per diluted share, in Q2 2016. The Company's adjusted diluted earnings per share from continuing operations declined 4% to $0.66 and included a $0.01 per share tax benefit related to the adoption of new stock-based compensation accounting guidance. ADP's earnings fell short of Wall Street's estimates of $0.67 per share.

For FY17, ADP's net earnings from continuing operations grew 16% to $1.7 billion, and diluted earnings from continuing operations increased to $3.85 per share; representing growth of 18%. Adjusted diluted earnings per share from continuing operations increased to $3.70; representing growth of 13%, and benefited from fewer shares on a y-o-y basis, lower effective tax rate resulting from an incremental $0.04 per share tax benefit related to prior period software development efforts, and a $0.07 per share tax benefit related to the adoption of new stock-based compensation accounting guidance.

Segment Results

During Q4 FY17, ADP's Employer Services' revenues increased 2% to $2.34 billion on a reported basis while it grew 3% on an organic basis. For the fiscal year, ADP's revenues increased 4% to $9.54 billion on a reported basis.

The number of employees on ADP clients' payrolls in the United States increased 2.1% for Q4 FY17 and 2.4% for FY17, when measured on a same-store-sales basis for a subset of clients ranging from small to large businesses. The Company's Employer Services' client revenue retention increased 60 basis points for Q4 FY17 and declined 50 basis points to 90.0% for FY17.

For Q4 FY17, ADP's Employer Services' segment margin decreased approximately 210 basis points to 26.5% on a y-o-y basis. For FY17, the unit's segment margin increased approximately 20 basis points to 30.6%.

For Q4 FY17, ADP's PEO Services segment's revenues surged 16% to $891.6 million while revenues increased 13% to $3.48 billion for FY17. PEO Services' segment margin increased approximately 10 basis points to 12.0% for Q4 FY17 and 80 basis points to 12.9% for the full year. Average worksite employees paid by PEO Services increased 12% to more than 485,000 for the reported quarter, and 12% to approximately 462,000 for the full year.

For Q4 FY17, ADP's interest on funds held for clients increased 8% to $105 million from $97 million in Q4 FY16, and for the full year increased 5% to $397 million from $377 million in FY16. The Company's average client funds balance increased 3% to $23.9 billion in the reported quarter compared to $23.1 billion in the year ago same period, and 4% on a constant dollar basis. For FY17, ADP's average client fund balance increased 3% to $23.0 billion compared to $22.4 billion in FY16, and 3% on a constant dollar basis.

ADP's average interest yield on client-funds was 1.8% for Q4 FY17, which was up 10 basis points compared to the year earlier corresponding quarter. For FY17, ADP's average interest yield on client funds was 1.7%, which was flat on a y-o-y basis.

Outlook

For FY18, ADP is forecasting revenue growth of 5% to 6% compared to FY17 revenue of $12.4 billion. The Company noted that revenue forecasts assume growth in worldwide new business bookings of 5% to 7% compared to the $1.65 billion sold in FY17. ADP is expecting FY17 diluted earnings per share to decline 1% to 3% and adjusted diluted earnings per share growth of 2% to 4%.

For the Employer Services segment, ADP anticipates revenue growth of approximately 2% to 3% and a margin decline of 50 to 75 basis points for FY17. For the PEO Services segment, ADP anticipates 11% to 13% revenue growth and margin expansion of 25 to 50 basis points.

Stock Performance

At the closing bell, on Tuesday, August 08, 2017, Automatic Data Processing's stock slipped 3.26%, ending the trading session at $108.51. A total volume of 9.71 million shares have exchanged hands, which was higher than the 3-month average volume of 3.95 million shares. The Company's stock price surged 11.77% in the last three months, 12.69% in the past six months, and 21.32% in the previous twelve months. Moreover, the stock gained 5.58% since the start of the year. The stock is trading at a PE ratio of 28.20 and has a dividend yield of 2.10%. The stock currently has a market cap of $48.71 billion.

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