Written by StockNews.com

Automatic Data Processing (Nasdaq:ADP) early Wednesday posted solid fiscal third quarter earnings results and updated its full-year guidance, sending its shares soaring higher in morning trading.

The Roseland, NJ-based business and outsourcing services provider reported Q3:

• earnings per share (EPS) of $1.31, which was $0.08 better than the Wall Street consensus estimate of $1.23 [and that]
• revenues rose 5.0% from last year to $3.41 billion, mostly in-line with analysts’ view for $3.42 billion.

Looking ahead, ADP provided several updates to its full-year outlook, including a lower effective tax rate, and EPS growth of 17% to 18%, or 13% to 14% on an adjusted basis.

Carlos Rodriguez, President & CEO, commented via press release:

“Overall, our results this quarter reflect our continued investments in our product, service, and sales organizations as we worked to overcome our strong fiscal 2016 new business bookings performance driven by robust demand for our Affordable Care Act solutions.

We are pleased with the progress we are making on our strategic initiatives and we remain committed to simplifying our organization and continuously improving the client experience with an enhanced service model and innovative solutions.”

Automatic Data Processing shares rose $10.05 (+9.67%) to $114.01 in premarket trading Wednesday. Year-to-date, ADP had gained 1.75% prior to today’s report, versus a 7.28% rise in the benchmark S&P 500 index during the same period.

ADP currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 64 stocks in the Outsourcing – Business Services category.