Surge in PEO Industry Fuels ADP Earnings Surprise

http://www.zacks.com/stock/news/142202/automatic-data-processing-adp-posts-in-line-q4-earnings

“PEO Services revenues rose 19.2% year over year to $584 million in the reported quarter.”

We are seeing the same growth on the $4B we manage to help prove out their trend. ADP is an awesome company, but growth is being spiked by more employers realizing that the PEO model is the most efficient and effective way to deploy non-operational employer-related processes such as Human Resources, Compliance and Health Insurance. The Affordable Health Care Act is a “tipping point”.

It is going to be quite a fall!

P