automatic data processing
(ADP:NASDAQ GS)
automatic data processing (ADP) Key Developments
Automatic Data Processing, Inc. announced the addition of two new capabilities to ADP Tax Credits, including SECURE Document Submission and Voice Signature. These new capabilities provide employers more choices in their efforts to improve the security, efficiency and ease of screening, verification and document submission required for the federal Work Opportunity Tax Credit (WOTC), accelerating the process to capture credits. SECURE Document Submission and Voice Signature are the latest additions to an already comprehensive suite of ADP WOTC screening and delivery solutions that offer superior flexibility, including Web-in Call-in and IVR (with voice signature, fax and email form delivery) and Mail-in programs. These services help enable companies to take full advantage of available tax credits and incentives to help reduce a company's overall tax liability. ADP's new SECURE Document Submission and Voice Signature solutions offer additional methods to help companies of all sizes improve the efficiency of their WOTC administration: SECURE Document Submission allows companies to upload WOTC required forms to ADP's dedicated secure online portal to significantly help enhance the security of their WOTC documentation process. Voice Signature allows employees to "sign" forms over the phone, streamlining the WOTC call-in screening and verification process by reducing the need to capture physical signatures on forms and mail, fax or email documents. This new capability provides additional flexibility for the employer and employee, allowing form completion in a single phone call.
Automatic Data Processing, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended March 31, 2013. For the quarter, the company reported net earnings of $482.7 million or $0.99 diluted earnings per share on total revenue of $3,114.3 million against net earnings of $452.4 million or $0.92 diluted earnings per share on total revenue of $2,910.9 million a year ago. Earnings from continuing operations before income taxes was $724.8 million against $682.1 million a year ago. Net earnings from continuing operations was $482.7 million or $0.99 earnings per share against $450.2 million or $0.91 earnings per share a year ago. For nine months, the company reported net earnings of $1,178.8 million or $2.42 diluted earnings per share on total revenue of $8,499.6 million against net earnings of $1,130.1 million or $2.29 diluted earnings per share on total revenue of $7,992.4 million a year ago. Earnings from continuing operations before income taxes was $1,719.2 million against $1,714.0 million a year ago. Net earnings from continuing operations was $1,137.1 million or $2.33 earnings per share against $1,123.4 million or $2.28 earnings per share a year ago. For 2013, the company forecasts assume no changes in the current economic environment. The company narrowing guidance for total company revenue and earnings per share growth for the year. The company continue to anticipate driving good pretax margins in the business segments, although anticipates a decline in total ADP pretax margin. Forecasts continue to be impacted by an expected lower average yield on the client funds portfolio due to continued low market interest rates. The company anticipates an improvement in the effective tax rate of approximately 50 basis points from 34.5% compared with prior forecast for a 30 basis point improvement. The company forecasts exclude the results of discontinued operations. The company anticipates revenues to 6% - 7% growth compared with prior forecast of 5% - 7% growth.
ADP, Inc. announced it can now process Pennsylvania Local Services Tax (PA LST) as a tax, rather than a voluntary deduction, for clients using its comprehensive human resource and payroll platform, RUN Powered by ADP. PA LST is a payroll tax that is deducted from employees that work in the state of Pennsylvania and is used to support municipal services and school district funding. With recent upgrades to the RUN Powered by ADP platform, which also includes live, 24/7 client support, ADP can now automatically withhold and make quarterly PA LST tax filings on behalf of its small business clients.
Automatic Data Processing, Inc. Presents at Jefferies 2013 Global Technology, Media and Telecom Conference, May-08-2013 12:15 PM. Venue: The Westin New York, Times Square Hotel, New York, New York, United States. Speakers: Carlos A. Rodriguez, Chief Executive Officer, President and Director.
Automatic Data Processing, Inc. Presents at Bernstein's 29th Annual Strategic Decisions Conference, May-29-2013 04:00 PM. Venue: The Waldorf=Astoria Hotel, 301 Park Avenue (between 49th and 50th Street), New York, NY 10022, United States. Speakers: Carlos A. Rodriguez, Chief Executive Officer, President and Director.

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Industry Analysis
ADP
Industry Average
| Valuation | ADP | Industry Range |
| Price/Earnings | 23.9x |
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| Price/Sales | 3.0x |
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| Price/Book | 5.1x |
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| Price/Cash Flow | 19.6x |
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| TEV/Sales | 2.8x |
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