Human Capital Management Weekly Review: ADP, Paychex
This week in the Human Capital Management industry, Automatic Data Processing (NASDAQ:ADP) released its second quarter fiscal 2015 earnings results, reporting strong growth in revenue, and Paychex (NASDAQ:PAYX) released its monthly report pertaining to small business employment in the U.S.
Automatic Data Processing
ADP announced its second quarter fiscal 2015 results on February 5. The company reported a 7% year-on-year increase in its revenue, crossing $2.6 billion, and tracking the lower end of its guidance. [1] ADP’s second quarter results benefited from solid growth in new business bookings and strength in the U.S. job environment. Its net profits from continuing operations increased 6% and earnings per share grew 8%. (Click here to read our coverage of ADP’ second quarter results)
ADP’s stock rose 5.6% over the week through Thursday, driven by its strong earnings. We currently have a price estimate of $76 for ADP. We estimate revenues of $11 billion and EPS of $2.96 for fiscal 2015, in line with consensus estimates.
Click here to see our complete analysis of ADP
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Paychex
The Paychex IHS Small Business Jobs Index was released on February 3. The index, which analyzes changes in small business employment trends, increased 0.09% sequentially in the month of January, following several months of moderating employment growth. However, the three month trend declined 0.19%. Paychex is hopeful of continued growth in small business employment given the month-on-month uptick and the index remaining above 100. [2]
Paychex’s stock rose 4.9% over the week through Thursday. We currently have a price estimate of $45 for Paychex. We estimate revenues of $2.7 billion and EPS of $1.83 for fiscal 2015, in line with consensus estimates.
Click here to see our complete analysis of Paychex
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More Trefis Research
- ADP Reports Second Quarter Fiscal 2015 Results, February 4, 2015, www.adp.com [↩]
- January Shows Stronger Employment Growth Among Small Businesses, According to the Paychex | IHS Small Business Jobs Index, February 3, 2015, www.paychex.com [↩]