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Insperity (NSP) Q3 Earnings Beat Estimates, 2022 EPS View Up
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Insperity, Inc. (NSP - Free Report) reported mixed third-quarter 2022 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.
Adjusted earnings (excluding 25 cents from non-recurring items) of $1.23 per share outpaced the Zacks Consensus Estimate by 29.5% and rose 38.2% year over year.
Revenues of $1.44 billion missed the consensus mark by 0.9% but increased 19% year over year. The upside was backed by a 17.8% increase in paid worksite employee (WSEE).
The average number of worksite employees paid per month, 303,347, increased 17.8% year over year.
Over the past year, shares of Insperity have lost 14% compared with the 20.8% decline of the industry it belongs to.
Gross profit grew 23.2% year over year to $244.6 million. The uptick was backed by a 17.8% increase in paid WSEEs and a 4.7% increase in gross profit per WSEE per month.
Adjusted EBITDA increased 33% year over year to $79.8 million. Adjusted EBITDA per worksite employee per month rose 2% to $104.
Operating expenses increased 20.8% year over year to $191.9 million. Operating expenses per worksite employee per month rose 2.4% to $211.
Operating income increased 32.9% year over year to $52.6 million. Operating income per worksite employee per month improved 13.7% to $58 million.
Balance Sheet & Cash Flow
Insperity exited third-quarter 2022 with adjusted cash, cash equivalents and marketable securities of $562.14 million compared with $510.9 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 63,000 shares for $63.4 million and paid out $19.8 million as cash dividends. Capital expenditures totaled $7.4 million.
Q4 Guidance
Adjusted EBITDA is anticipated between $62 million and $68 million. Average WSEEs are expected in the range of 308,000-310,700.
The adjusted EPS guidance for the December quarter is provided between 87 cents and 98 cents per share. The Zacks Consensus Estimate is, however, pegged at 84 cents per share.
2022 Guidance
Insperity now projects adjusted earnings in the band of $5.23-$5.37 per share compared with the prior guidance of $4.68-$5.25. The current Zacks Consensus Estimate is pegged at $4.95.
Adjusted EBITDA is now anticipated in the range of $335-$342 million compared with the prior guidance of $305-$335 million. Average WSEEs are expected to be 295,100-295,800 compared with the prior guidance of 294,600-297,200.
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been steady over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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Insperity (NSP) Q3 Earnings Beat Estimates, 2022 EPS View Up
Insperity, Inc. (NSP - Free Report) reported mixed third-quarter 2022 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.
Adjusted earnings (excluding 25 cents from non-recurring items) of $1.23 per share outpaced the Zacks Consensus Estimate by 29.5% and rose 38.2% year over year.
Revenues of $1.44 billion missed the consensus mark by 0.9% but increased 19% year over year. The upside was backed by a 17.8% increase in paid worksite employee (WSEE).
The average number of worksite employees paid per month, 303,347, increased 17.8% year over year.
Over the past year, shares of Insperity have lost 14% compared with the 20.8% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Insperity, Inc. Price, Consensus and EPS Surprise
Insperity, Inc. price-consensus-eps-surprise-chart | Insperity, Inc. Quote
Operating Results
Gross profit grew 23.2% year over year to $244.6 million. The uptick was backed by a 17.8% increase in paid WSEEs and a 4.7% increase in gross profit per WSEE per month.
Adjusted EBITDA increased 33% year over year to $79.8 million. Adjusted EBITDA per worksite employee per month rose 2% to $104.
Operating expenses increased 20.8% year over year to $191.9 million. Operating expenses per worksite employee per month rose 2.4% to $211.
Operating income increased 32.9% year over year to $52.6 million. Operating income per worksite employee per month improved 13.7% to $58 million.
Balance Sheet & Cash Flow
Insperity exited third-quarter 2022 with adjusted cash, cash equivalents and marketable securities of $562.14 million compared with $510.9 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 63,000 shares for $63.4 million and paid out $19.8 million as cash dividends. Capital expenditures totaled $7.4 million.
Q4 Guidance
Adjusted EBITDA is anticipated between $62 million and $68 million. Average WSEEs are expected in the range of 308,000-310,700.
The adjusted EPS guidance for the December quarter is provided between 87 cents and 98 cents per share. The Zacks Consensus Estimate is, however, pegged at 84 cents per share.
2022 Guidance
Insperity now projects adjusted earnings in the band of $5.23-$5.37 per share compared with the prior guidance of $4.68-$5.25. The current Zacks Consensus Estimate is pegged at $4.95.
Adjusted EBITDA is now anticipated in the range of $335-$342 million compared with the prior guidance of $305-$335 million. Average WSEEs are expected to be 295,100-295,800 compared with the prior guidance of 294,600-297,200.
Currently, Insperity carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been steady over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.