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) Q1 Revenues and Earnings Beat, Stock Up 1.5%
Read MoreHide Full Article
Insperity, Inc. (NSP - Free Report) reported solid first-quarter 2023 results, wherein earnings and revenues surpassed the respective Zacks Consensus Estimate.
Insperity’s shares have gained 1.5% in response to the better-than-expected performance.
Adjusted earnings (excluding 22 cents from non-recurring items) of $2.67 per share outpaced the Zacks Consensus Estimate and our estimate by 7.7% and rose more than 34.2% year over year.
Revenues of $1.77 billion surpassed the Zacks Consensus Estimate by 0.8% and our estimate by 1.7%. Revenues increased 12.2% year over year. The upside was backed by an increase in the paid average number of worksite employees (WSEE).
The average number of WSEEs paid per month was 306,691, which increased 10.1% year over year.
Shares of Insperity have gained 17% in the past year against its industry’s 18.9% decline.
Operating Results
Gross profit grew 16.2% year over year to $332.1 million. The uptick was backed by a 10.1% increase in paid WSEEs and a 5.6% increase in gross profit per WSEE per month.
Operating expenses increased 12.7% year over year to $211.1 million. Operating expenses per WSEE per month rose 2.2% to $229.
Operating income increased 23% year over year to $121 million. Operating income per WSEE per month improved 11.9% to $132.
Balance Sheet & Cash Flow
Insperity exited first-quarter 2023 with adjusted cash, cash equivalents and marketable securities of $732.1 million, compared with $765.9 million at the end of the prior quarter. Long-term debt amounted to $369.40 million, flat sequentially.
During the reported quarter, NSP repurchased almost 289,000 shares for $35 million and paid out $20 million as cash dividends. Capital expenditures totaled $6.8 million.
Q2 Guidance
Adjusted EBITDA is anticipated to be between $81 million and $90 million. Average WSEEs are expected in the range of 310,800-313,700.
The adjusted earnings per share guidance for the second quarter is between $1.16 per share and $1.32 per share. However, the Zacks Consensus Estimate is pegged at $1.14 per share which lies below the guided range.
2023 Guidance
Insperity now projects adjusted earnings in the band of $5.62-$6.39 per share. The current Zacks Consensus Estimate is pegged at $5.67 per share which lies below the midpoint ($6.00) of the guided range. Adjusted EBITDA is now anticipated in the range of $370-$410 million. Average WSEEs are expected to be 315,600-321,600.
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43 per share, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Fiserv, Inc. reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the Zacks Consensus Estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimates by 4.65%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Insperity (NSP) Q1 Revenues and Earnings Beat, Stock Up 1.5%
Insperity, Inc. (NSP - Free Report) reported solid first-quarter 2023 results, wherein earnings and revenues surpassed the respective Zacks Consensus Estimate.
Insperity’s shares have gained 1.5% in response to the better-than-expected performance.
Adjusted earnings (excluding 22 cents from non-recurring items) of $2.67 per share outpaced the Zacks Consensus Estimate and our estimate by 7.7% and rose more than 34.2% year over year.
Revenues of $1.77 billion surpassed the Zacks Consensus Estimate by 0.8% and our estimate by 1.7%. Revenues increased 12.2% year over year. The upside was backed by an increase in the paid average number of worksite employees (WSEE).
Insperity, Inc. Price, Consensus and EPS Surprise
Insperity, Inc. price-consensus-eps-surprise-chart | Insperity, Inc. Quote
The average number of WSEEs paid per month was 306,691, which increased 10.1% year over year.
Shares of Insperity have gained 17% in the past year against its industry’s 18.9% decline.
Operating Results
Gross profit grew 16.2% year over year to $332.1 million. The uptick was backed by a 10.1% increase in paid WSEEs and a 5.6% increase in gross profit per WSEE per month.
Operating expenses increased 12.7% year over year to $211.1 million. Operating expenses per WSEE per month rose 2.2% to $229.
Operating income increased 23% year over year to $121 million. Operating income per WSEE per month improved 11.9% to $132.
Balance Sheet & Cash Flow
Insperity exited first-quarter 2023 with adjusted cash, cash equivalents and marketable securities of $732.1 million, compared with $765.9 million at the end of the prior quarter. Long-term debt amounted to $369.40 million, flat sequentially.
During the reported quarter, NSP repurchased almost 289,000 shares for $35 million and paid out $20 million as cash dividends. Capital expenditures totaled $6.8 million.
Q2 Guidance
Adjusted EBITDA is anticipated to be between $81 million and $90 million. Average WSEEs are expected in the range of 310,800-313,700.
The adjusted earnings per share guidance for the second quarter is between $1.16 per share and $1.32 per share. However, the Zacks Consensus Estimate is pegged at $1.14 per share which lies below the guided range.
2023 Guidance
Insperity now projects adjusted earnings in the band of $5.62-$6.39 per share. The current Zacks Consensus Estimate is pegged at $5.67 per share which lies below the midpoint ($6.00) of the guided range. Adjusted EBITDA is now anticipated in the range of $370-$410 million. Average WSEEs are expected to be 315,600-321,600.
Insperity currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43 per share, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Fiserv, Inc. reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the Zacks Consensus Estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimates by 4.65%.