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Insperity (NSP) Q1 Earnings & Revenues Top Estimates, View Up
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Insperity, Inc.(NSP - Free Report) reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $1.99 per share outpaced the Zacks Consensus Estimate as well as the year-ago quarter's figure by 9.3%. The reported figure lies within the guidance of $1.56-$2.12.
Revenues of $1.58 billion surpassed the consensus mark by 6.1% and increased 22.6% year over year. The upside was backed by a 3% increase in revenues per worksite employee (“WSEE”) and 19.5% increase in paid worksite employees.
The average number of worksite employees paid per month, 278,660, inched up 19.5% year over year. WSEEs paid from new client sales grew 37%, backed by strong sale bookings in fourth-quarter 2021.
Over the past year, shares of Insperity have gained 22.8% compared with 3.2% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Operating Results
Gross profit grew 13.7% year over year to $285.77 million. The uptick was backed by the outperformance by paid WSEEs, favorable pricing and gross profit contribution from the company’s direct-cost programs. Gross profit per worksite employee per month decreased 4.7% year over year to $342.
Adjusted EBITDA increased 13.8% year over year to $118.57 million. Adjusted EBITDA per worksite employee per month decreased 4.7% to $142.
Operating expenses increased 11.8% year over year to $187.38 million. Operating expenses per worksite employee per month decreased 6.7% to $224.
Operating income increased 17.4% year over year to $98.39 million. Operating income per worksite employee per month decreased 1.7% to $118.
Insperity exited first-quarter 2022 with adjusted cash, cash equivalents and marketable securities of $153.18 million compared with $162.75 million at the end of the prior quarter. Long-term debt amounted to $369.40 million, flat sequentially.
During the reported quarter, the company repurchased almost 308,000 shares for $27.4 million and paid out $17.2 million in cash dividends. Capital expenditures totaled $4.7 million.
Q2 Guidance
For second-quarter 2022, Insperity projects adjusted earnings per share between 88 cents and $1.12 per share. The current Zacks Consensus Estimate of $1.06 lies within the guided range.
Adjusted EBITDA is anticipated between $60 million and $73 million. Average WSEEs are expected in the range of 287,100-289,500.
2022 Guidance
Insperity has raised its guidance for 2022. The company now projects adjusted earnings in the band of $4.31-$5.09 per share compared with the prior guidance of $3.74-$4.86. The current Zacks Consensus Estimate of $4.38 lies within the updated guidance.
Adjusted EBITDA is now anticipated in the range of $285-$327 million compared with the prior guidance of $251-$311 million. Average WSEEs are expected to be 289,600-294,700 compared with the prior guidance of 287,100-292,200.
Equifax’s adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. The reported figure exceeded the guided range of $2.08-$2.18.
Equifax’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis. The reported figure exceeded the guided range of $1.32-$1.34 billion.
Waste Management (WM - Free Report) reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Waste Management’s adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate by 15.2% and improved 21.7% year over year.
Waste Management’s total revenues of $4.66 billion beat the consensus estimate by 4.6% and increased 13.4% year over year.
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Insperity (NSP) Q1 Earnings & Revenues Top Estimates, View Up
Insperity, Inc.(NSP - Free Report) reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $1.99 per share outpaced the Zacks Consensus Estimate as well as the year-ago quarter's figure by 9.3%. The reported figure lies within the guidance of $1.56-$2.12.
Revenues of $1.58 billion surpassed the consensus mark by 6.1% and increased 22.6% year over year. The upside was backed by a 3% increase in revenues per worksite employee (“WSEE”) and 19.5% increase in paid worksite employees.
The average number of worksite employees paid per month, 278,660, inched up 19.5% year over year. WSEEs paid from new client sales grew 37%, backed by strong sale bookings in fourth-quarter 2021.
Over the past year, shares of Insperity have gained 22.8% compared with 3.2% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Operating Results
Gross profit grew 13.7% year over year to $285.77 million. The uptick was backed by the outperformance by paid WSEEs, favorable pricing and gross profit contribution from the company’s direct-cost programs. Gross profit per worksite employee per month decreased 4.7% year over year to $342.
Adjusted EBITDA increased 13.8% year over year to $118.57 million. Adjusted EBITDA per worksite employee per month decreased 4.7% to $142.
Operating expenses increased 11.8% year over year to $187.38 million. Operating expenses per worksite employee per month decreased 6.7% to $224.
Operating income increased 17.4% year over year to $98.39 million. Operating income per worksite employee per month decreased 1.7% to $118.
Insperity, Inc. Price, Consensus and EPS Surprise
Insperity, Inc. price-consensus-eps-surprise-chart | Insperity, Inc. Quote
Balance Sheet & Cash Flow
Insperity exited first-quarter 2022 with adjusted cash, cash equivalents and marketable securities of $153.18 million compared with $162.75 million at the end of the prior quarter. Long-term debt amounted to $369.40 million, flat sequentially.
During the reported quarter, the company repurchased almost 308,000 shares for $27.4 million and paid out $17.2 million in cash dividends. Capital expenditures totaled $4.7 million.
Q2 Guidance
For second-quarter 2022, Insperity projects adjusted earnings per share between 88 cents and $1.12 per share. The current Zacks Consensus Estimate of $1.06 lies within the guided range.
Adjusted EBITDA is anticipated between $60 million and $73 million. Average WSEEs are expected in the range of 287,100-289,500.
2022 Guidance
Insperity has raised its guidance for 2022. The company now projects adjusted earnings in the band of $4.31-$5.09 per share compared with the prior guidance of $3.74-$4.86. The current Zacks Consensus Estimate of $4.38 lies within the updated guidance.
Adjusted EBITDA is now anticipated in the range of $285-$327 million compared with the prior guidance of $251-$311 million. Average WSEEs are expected to be 289,600-294,700 compared with the prior guidance of 287,100-292,200.
Currently, Insperity carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Omnicom Group (OMC - Free Report) reported impressive first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Omnicom’s earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by strong margin performance.
Omnicom’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2022 results.
Equifax’s adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. The reported figure exceeded the guided range of $2.08-$2.18.
Equifax’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis. The reported figure exceeded the guided range of $1.32-$1.34 billion.
Waste Management (WM - Free Report) reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Waste Management’s adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate by 15.2% and improved 21.7% year over year.
Waste Management’s total revenues of $4.66 billion beat the consensus estimate by 4.6% and increased 13.4% year over year.