Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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.