Core Viewpoint - ADP has announced a public offering of $1.0 billion in senior notes with a 4.750% interest rate, maturing in 2032, aimed at refinancing existing debt and supporting general corporate purposes [1][2]. Group 1: Offering Details - The public offering consists of $1.0 billion aggregate principal amount of senior notes due in 2032 [1]. - The expected net proceeds from the offering will be received around May 8, 2025 [2]. - The proceeds will primarily be used to refinance existing debt, with any remaining funds allocated for general corporate purposes [2]. Group 2: Regulatory and Legal Information - ADP has filed a registration statement with the SEC, which includes a prospectus and preliminary prospectus supplement for the offering [3]. - The press release clarifies that it does not constitute an offer to sell or solicit offers to buy the debt securities [4]. Group 3: Company Overview - ADP is a leading global technology company specializing in cloud-based human capital management solutions, focusing on HR, talent, time management, benefits, and payroll [5].

Core Insights - Small businesses are navigating a complex landscape influenced by new technologies, changing employee expectations, and compliance challenges, as highlighted during National Small Business Week [1][3] - ADP's Grit & Wisdom Contest gathered insights from nearly 18,000 small businesses, revealing key strategies for success [1][4] Group 1: Key Advice from Small Business Owners - Success requires patience and persistence, with an emphasis on adaptability and continuous innovation [4] - The importance of a strong team and positive workplace culture is crucial for growth, encouraging leaders to motivate employees and foster curiosity [4] - Small business owners express love and enjoyment as key emotions that sustain them, enhancing customer relationships and team morale [4] Group 2: Expert Insights from ADP - A comprehensive benefits strategy is essential for attracting talent, with a focus on high-impact benefits and employee education to enhance retention [9] - Learning and development are vital for growth, emphasizing practical experience and on-the-job training to cultivate employee skills [9] - Staying updated on compliance changes is critical, as small businesses must adapt to evolving laws regarding wages, pay transparency, and leave policies [9] - Technology is increasingly important for streamlining operations while maintaining human connections, with a focus on intuitive solutions that support business growth [9]

Core Viewpoint - Automatic Data Processing, Inc. (NASDAQ: ADP) recently reported its Q3 earnings, prompting a detailed analysis of the company's financial performance and investment potential [1]. Financial Performance - The company has shown a consistent focus on long-term growth, appealing to investors with a 5-10 year investment horizon [1]. - The investment strategy emphasizes a balanced portfolio that includes growth, value, and dividend-paying stocks, with a particular focus on value investments [1].

Revenue and Earnings Growth - Revenue growth of 7% to $15,434.1 million for the nine months ended March 31, 2025, with 7% organic constant currency growth[84] - Adjusted diluted earnings per share (EPS) grew by 9% to $7.75[84] - Net earnings for the three months ended March 31, 2025, were $1,249.5 million, up 5% from $1,184.9 million in the same period last year[106] - Diluted EPS for the nine months ended March 31, 2025, increased to $7.75, representing a 10% growth from $7.07 in the prior year[106] - Adjusted EBIT for the nine months ended March 31, 2025, reached $4,134.2 million, reflecting a 9% increase compared to $3,779.1 million in the previous year[99] Client and Employee Metrics - Pays per control metric grew 1% for the nine months ended March 31, 2025, compared to the same period in 2024[82] - PEO average worksite employees increased by 3% for the nine months ended March 31, 2025, compared to the same period in 2024[82] - The average client funds balance increased by 6.6% to $37.5 billion for the nine months ended March 31, 2025[88] - Funds held for clients rose to $44,495.8 million for the three months ended March 31, 2025, up from $41,701.7 million in 2024, indicating an increase of 6.8%[147] Operating Expenses and Cash Flow - Operating expenses increased by 6% to $11,571.2 million for the nine months ended March 31, 2025[89] - Cash provided by operating activities for the nine months ended March 31, 2025, was $3,500.5 million, up $643.5 million from $2,857.0 million in 2024[132] - Cash returned to shareholders totaled $2.8 billion, including $1.8 billion in dividends and $1.0 billion in share repurchases[84] Acquisitions and Investments - The company closed the acquisition of PEI in January and WorkForce Software in October, enhancing its global payroll capabilities[81] - Net cash flows used in investing activities included a net cash disbursement of $1,158.3 million for the acquisition of Workforce Software[133] - Capital expenditures for the nine months ended March 31, 2025, were $139.9 million, down from $151.6 million for the same period in 2024, with expectations for fiscal 2025 capital expenditures between $180.0 million and $200.0 million[140] Financial Position and Securities - Cash and cash equivalents as of March 31, 2025, were $2.7 billion, primarily invested in time deposits and money market funds[129] - The total available-for-sale securities at fair value increased from $31.2 billion as of June 30, 2024, to $33.9 billion as of March 31, 2025[147] - The company reported net unrealized pre-tax losses on available-for-sale securities of $(688.0) million as of March 31, 2025, compared to $(1,515.8) million as of June 30, 2024[147] Debt and Credit Facilities - The company has $10.3 billion available under committed credit facilities, with no borrowings through March 31, 2025[138] - The company has $4.0 billion of senior unsecured notes maturing in 2025, 2028, 2030, and 2034, and may revisit the long-term debt market for refinancing and acquisitions[136] Market and Risk Management - The company is exposed to market risk from foreign currency exchange rates, which could impact consolidated results, and manages this risk through operating activities and derivative financial instruments[149] - The company limits credit risk by investing primarily in AAA-rated and AA-rated securities, ensuring a focus on investment-grade securities[148] Accounting and Compliance - The preparation of financial statements requires management to make estimates and assumptions that could differ from actual results, as noted in the critical accounting policies[150] - Recent accounting pronouncements are discussed in Note 2 of the Consolidated Financial Statements, indicating ongoing compliance with updated accounting standards[151]

Automatic Data Processing, Inc. (ADP) has reported impressive third-quarter fiscal 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.ADP’s earnings per share of $3.06 beat the consensus estimate by 3.4% and increased 6.3% from the year-ago quarter. Total revenues of $5.6 billion surpassed the consensus estimate by 1.1% and grew 5.7% on a year-over-year basis.The ADP stock has gained 22.1% in the past year rallying closely with its industry and outperforming the 12.5% rise of ...

Automatic Data Processing reported strong fiscal 2025 Q3 earnings, exceeding expectations despite competitive challenges.Automatic Data Processing (ADP -0.39%), a global leader in human capital management (HCM) services, reported fiscal 2025 third-quarter earnings on Wednesday, April 30, that topped analysts' consensus expectations. Adjusted EPS of $3.06 beat the projected $2.97, while Q3 revenue reached $5.55 billion compared to the $5.49 billion estimate. ADP's performance this quarter marked solid financ ...

Automatic Data Processing (ADP) came out with quarterly earnings of $3.06 per share, beating the Zacks Consensus Estimate of $2.96 per share. This compares to earnings of $2.88 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.38%. A quarter ago, it was expected that this payroll and human resources company would post earnings of $2.27 per share when it actually produced earnings of $2.35, delivering a surprise of 3.52%.Over t ...

Automatic Data Processing (ADP) Q3 2025 Earnings Call April 30, 2025 08:30 AM ET Speaker0 Good morning. My name is Michelle, and I'll be your conference operator. At this time, I would like to welcome everyone to ADP's Third Quarter twenty twenty five Earnings Call. I would like to inform you that this conference is being recorded. After the prepared remarks, we will conduct a question and answer session. Instructions will be given at that time. I will now turn the conference over to Matt Keating, Vice Pres ...

Automatic Data Processing (ADP) Q3 2025 Earnings Call April 30, 2025 08:30 AM ET Company Participants Matthew Keating - Vice President - IRMaria Black - President, CEO & DirectorDon Mcguire - CFOTien Tsin Huang - Managing DirectorBryan Bergin - Managing DirectorSamad Samana - Managing DirectorJames Faucette - Managing DirectorKevin McVeigh - Managing DirectorPeter Hadley - Corporate Vice President & TreasurerKartik Mehta - Executive MD & Director of Research Conference Call Participants Ramsey El Assal - An ...

ADP Earnings Call & Webcast Q3 Fiscal 2025 April 30, 2025 DISCLAIMERS FORWARD-LOOKING STATEMENTS This document and other written or oral statements made from time to time by ADP may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by the use of words like "outlook," "expects," "assumes," "projects," "anticipates," "estimates," "we believe," "could," "is designed to" and ot ...