Checks in the Mail
By Jesse Freund

(Business 2.0) – When Automatic Data Processing releases fourth-quarter results in late July, the payroll-processing giant is expected to report earnings of 34 to 36 cents a share--well below last year's 55 cents. But the strengthening economy may forecast better days ahead for this employment-sector bellwether. More jobs mean more paychecks, but rising interest rates help too: 20 percent of ADP's revenue comes from investing tax withholdings in short-term Treasury bills and municipal bonds, so higher rates translate into more interest income. Analysts call for ADP to see earnings growth in the high double digits later this year.