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Why Is Insperity, Inc. (NSP) Down 4.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Insperity, Inc. (NSP - Free Report) . Shares have lost about 4.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Insperity, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Insperity 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.
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.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 12.7% due to these changes.
VGM Scores
Currently, Insperity, Inc. has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Insperity, Inc. has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Insperity, Inc. belongs to the Zacks Staffing Firms industry. Another stock from the same industry, ManpowerGroup (MAN - Free Report) , has gained 8.8% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.
Manpower reported revenues of $4.8 billion in the last reported quarter, representing a year-over-year change of -6.6%. EPS of $2.21 for the same period compares with $1.93 a year ago.
For the current quarter, Manpower is expected to post earnings of $2.14 per share, indicating a change of -2.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Manpower. Also, the stock has a VGM Score of A.
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Why Is Insperity, Inc. (NSP) Down 4.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Insperity, Inc. (NSP - Free Report) . Shares have lost about 4.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Insperity, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Insperity Surpasses Q3 Earnings & Revenues Estimates
Insperity 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.
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.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 12.7% due to these changes.
VGM Scores
Currently, Insperity, Inc. has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Insperity, Inc. has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Insperity, Inc. belongs to the Zacks Staffing Firms industry. Another stock from the same industry, ManpowerGroup (MAN - Free Report) , has gained 8.8% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.
Manpower reported revenues of $4.8 billion in the last reported quarter, representing a year-over-year change of -6.6%. EPS of $2.21 for the same period compares with $1.93 a year ago.
For the current quarter, Manpower is expected to post earnings of $2.14 per share, indicating a change of -2.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Manpower. Also, the stock has a VGM Score of A.