We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Insperity (NSP) Stock Dips 2% Despite Earnings Beat in Q2
Read MoreHide Full Article
Insperity, Inc. (NSP - Free Report) reported solid second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
The stock has lost 2% since its earnings release on Aug 1. The downfall can be attributed to a weak third-quarter guidance. The adjusted EPS guidance for the June quarter is provided between 83 cents and $1.06 per share. The midpoint of the guided range (94 cents) is below the consensus estimate of $1.02.
Adjusted earnings (excluding 29 cents from non-recurring items) of $1.16 per share outpaced the Zacks Consensus Estimate by 17.2% and rose 27.5% year over year.
Revenues of $1.43 billion surpassed the consensus mark by 2.2% and increased 20.2% year over year. The upside was backed by a 1.2% increase in revenues per worksite employee (WSEE) and a 19.4% increase in paid worksite employees.
The average number of worksite employees paid per month, 290,507, increased 19.4% year over year.
Over the past year, shares of Insperity have gained 9.5% against the 9.9% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Operating Results
Gross profit grew 20.2% year over year to $239.9 million. The uptick was backed by the outperformance by paid WSEEs, favorable pricing, higher-than-expected contributions from each of the direct cost programs and traditional employment offerings. Gross profit per worksite employee per month inched up 0.7% year over year to $275.
Adjusted EBITDA increased 25% year over year to $75 million. Adjusted EBITDA per worksite employee per month rose 5% to $86.
Operating expenses increased 16.5% year over year to $191.5 million. Operating expenses per worksite employee per month dipped 2.2% to $220.
Operating income increased 37.3% year over year to $48.4 million. Operating income per worksite employee per month improved 14.6% to $55 million.
Balance Sheet & Cash Flow
Insperity exited second-quarter 2022 with adjusted cash, cash equivalents and marketable securities of $510.9 million compared with $153.18 million at the end of the prior quarter. Long-term debt amounted to $369.40 million, flat sequentially.
During the reported quarter, Insperity repurchased almost 308,000 shares for $56.8 million and paid out $19.9 million in cash dividends. Capital expenditures totaled $4.3 million.
Q3 Guidance
Adjusted EBITDA is anticipated between $59 million and $71 million. Average WSEEs are expected in the range of 301,300-303,900.
2022 Guidance
Insperity now projects adjusted earnings in the band of $4.68-$5.25 per share compared with the prior guidance of $4.31-$5.09. The current Zacks Consensus Estimate is pegged at $4.71, below the midpoint of the guided range ($4.965).
Adjusted EBITDA is now anticipated in the range of $305-$335 million compared with the prior guidance of $285-$327 million. Average WSEEs are expected to be 294,600-297,200 compared with the prior guidance of 289,600-294,700.
Currently, Insperity carries a Zacks Rank #5 (Strong Sell).
Recent Performances of Some Other Business Services Companies
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Insperity (NSP) Stock Dips 2% Despite Earnings Beat in Q2
Insperity, Inc. (NSP - Free Report) reported solid second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
The stock has lost 2% since its earnings release on Aug 1. The downfall can be attributed to a weak third-quarter guidance. The adjusted EPS guidance for the June quarter is provided between 83 cents and $1.06 per share. The midpoint of the guided range (94 cents) is below the consensus estimate of $1.02.
Adjusted earnings (excluding 29 cents from non-recurring items) of $1.16 per share outpaced the Zacks Consensus Estimate by 17.2% and rose 27.5% year over year.
Revenues of $1.43 billion surpassed the consensus mark by 2.2% and increased 20.2% year over year. The upside was backed by a 1.2% increase in revenues per worksite employee (WSEE) and a 19.4% increase in paid worksite employees.
The average number of worksite employees paid per month, 290,507, increased 19.4% year over year.
Over the past year, shares of Insperity have gained 9.5% against the 9.9% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Operating Results
Gross profit grew 20.2% year over year to $239.9 million. The uptick was backed by the outperformance by paid WSEEs, favorable pricing, higher-than-expected contributions from each of the direct cost programs and traditional employment offerings. Gross profit per worksite employee per month inched up 0.7% year over year to $275.
Adjusted EBITDA increased 25% year over year to $75 million. Adjusted EBITDA per worksite employee per month rose 5% to $86.
Insperity, Inc. Price, Consensus and EPS Surprise
Insperity, Inc. price-consensus-eps-surprise-chart | Insperity, Inc. Quote
Operating expenses increased 16.5% year over year to $191.5 million. Operating expenses per worksite employee per month dipped 2.2% to $220.
Operating income increased 37.3% year over year to $48.4 million. Operating income per worksite employee per month improved 14.6% to $55 million.
Balance Sheet & Cash Flow
Insperity exited second-quarter 2022 with adjusted cash, cash equivalents and marketable securities of $510.9 million compared with $153.18 million at the end of the prior quarter. Long-term debt amounted to $369.40 million, flat sequentially.
During the reported quarter, Insperity repurchased almost 308,000 shares for $56.8 million and paid out $19.9 million in cash dividends. Capital expenditures totaled $4.3 million.
Q3 Guidance
Adjusted EBITDA is anticipated between $59 million and $71 million. Average WSEEs are expected in the range of 301,300-303,900.
2022 Guidance
Insperity now projects adjusted earnings in the band of $4.68-$5.25 per share compared with the prior guidance of $4.31-$5.09. The current Zacks Consensus Estimate is pegged at $4.71, below the midpoint of the guided range ($4.965).
Adjusted EBITDA is now anticipated in the range of $305-$335 million compared with the prior guidance of $285-$327 million. Average WSEEs are expected to be 294,600-297,200 compared with the prior guidance of 289,600-294,700.
Currently, Insperity carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performances of Some Other Business Services Companies
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.