On Feb. 6, Automatic Data Processing (NYSE:ADP) released second-quarter 2006 earnings for the period ended Dec. 31.

  • Sales slightly exceeded estimates, increasing by 14.1%, while earnings per share increased by 15.9%, matching analysts' target.
  • Operating margins declined slightly.
  • Interest on client funds (float) rose 20% on higher account balances and interest rates.
  • Repurchases reduced the share count by 4.6% and helped to boost earnings per share.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

Change

Sales

$2,270

$2,316

$2,030

14.1%

Net Profit

--

$283

$257

10.1%

EPS

$0.51

$0.51

$0.44

15.9%

Diluted Shares

--

555

582

(4.6%)



Get back to basics with a look at the income statement.

Margin Checkup

Q2 2006

Q2 2005

Change*

Operating Margin

19.59%

20.38%

(0.79)

Net Margin

12.22%

12.66%

(0.44)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2006

Q2 2005

Change

Cash + ST Invest.

$1,544

$1,571

(1.7%)

Accounts Rec.

$924

$1,050

(12.0%)



Liabilities

Q2 2006

Q2 2005

Change

Accounts Payable

$791

$852

(7.2%)

Long-Term Debt

$74

$74

(0.8%)



Learn the ways of the balance sheet.

Cash Flow Highlights
ADP declined to process any cash flow data for its shareholders. (Boo!)

Find out why Fools always follow the money.

Related Companies:

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Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Nathan Parmelee had no position in any of the companies mentioned. Fool rules are here.