Benzinga | Oct 27, 2021 04:39PM EDT

Read Why Investors Cheered Automatic Data Processing's Q1 Performance

* Automatic Data Processing Inc (NASDAQ:ADP) reported first-quarter FY22 revenue growth of 10% year-on-year to $3.83 billion, beating the consensus of $3.75 billion. The revenue rose 10% Y/Y on an organic constant currency basis.

* Employer Services revenues increased 8% Y/Y to $2.57 billion, and PEO Services revenues grew 15% Y/Y to $1.26 billion.

* Margin: Adjusted EBIT margin expanded 140 basis points to 23.9% as higher operating revenue more than offset the higher selling expenses and implementation costs.

* Non-GAAP EPS of $1.65 beat the consensus of $1.49.

* ADP generated $121.9 million in operating cash flow and held $1.6 billion in cash and equivalents.

* "This strong start to the fiscal year 2022 reflects improving demand across all of our offerings as more employers partner with ADP for their HCM solutions," CEO Carlos Rodriguez said.

* Outlook: ADP sees FY22 revenue of $16.06 billion - $16.21 billion above the analyst consensus of $16.02 billion.

* It sees non-GAAP EPS of $6.68 above the analyst consensus of $6.63.

* Price action: ADP shares closed higher by 1.44% at $221.95 on Wednesday.