ADP has released its 9m revenue figure which was below consensus and our expectations, mainly owing to lower revenues in the retail business. Management is now focusing on summer FY21 and planning for a profitable next year (e.g. rapid testing). ADP has also lowered its traffic expectations and announced an additional opex savings target. We will be revising our numbers downwards.
23 Oct 2020
Q3 20: better traffic than peers but performance below expectations
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Q3 20: better traffic than peers but performance below expectations
ADP has released its 9m revenue figure which was below consensus and our expectations, mainly owing to lower revenues in the retail business. Management is now focusing on summer FY21 and planning for a profitable next year (e.g. rapid testing). ADP has also lowered its traffic expectations and announced an additional opex savings target. We will be revising our numbers downwards.