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Insperity, Inc. (NSP) Up 7.9% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Insperity, Inc. (NSP - Free Report) . Shares have added about 7.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Insperity, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Insperity Q3 Earnings Beat Estimates
Insperity, Inc. reported solid third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings (excluding 30 cents from non-recurring items) of $1.46 per share outpaced the consensus estimate and our estimate by 71.8% and rose 18.7% year over year.
Revenues of $1.55 billion surpassed the Zacks Consensus Estimate by 1.3% and increased 7.8% year over year. The upside was backed by an increase in the paid average number of worksite employees (WSEE).
The average number of worksite employees paid per month, which was 315,340, increased 4% year over year. Revenue per WSEE per month increased 3.7% to $1,639.
Operating Results
Gross profit grew 55% year over year to $257.9 million. Operating expenses increased 3.4% year over year to $198.5 million. Operating expenses per worksite employee per month declined slightly to $210.
Operating income increased 13% year over year to $59.5 million. Operating income per WSEE per month improved 8.6% to $63.
Adjusted EBITDA for the reported quarter was $94.3 million, up 18.2% from the year-ago figure.
Balance Sheet & Cash Flow
Insperity exited third-quarter 2023 with adjusted cash, cash equivalents and marketable securities of $678.59 million compared with $580.1 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 873,000 shares for $86 million and paid out $63 million as cash dividends. Capital expenditures totaled $8.5 million.
Q4 Guidance 2023
Adjusted EBITDA is anticipated to be between $43 million and $63 million. Average WSEEs are expected to be in the range of 316,750-318,250.The adjusted earnings per share (EPS) guidance for the second quarter is provided between 44 and 88 cents per share.
2023 Guidance
Insperity now projects adjusted earnings to be in the band of $5.2-$5.6 per share compared with the previous guidance of earnings of $4.35-$5.32 per share. Adjusted EBITDA is now anticipated to be in the range of $340-$360 million, up from the previously guided range of $300-$350 million. Average WSEEs are expected to be 312,600-312,800. Average WSEEs were previously expected to be 314,200-315,600.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, Insperity, Inc. has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile 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
Insperity, Inc. has a Zacks Rank #3 (Hold). We expect an in-line 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, Robert Half (RHI - 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 2023.
Robert Half reported revenues of $1.56 billion in the last reported quarter, representing a year-over-year change of -14.7%. EPS of $0.90 for the same period compares with $1.53 a year ago.
Robert Half is expected to post earnings of $0.81 per share for the current quarter, representing a year-over-year change of -40.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.9%.
Robert Half has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Insperity, Inc. (NSP) Up 7.9% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Insperity, Inc. (NSP - Free Report) . Shares have added about 7.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Insperity, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Insperity Q3 Earnings Beat Estimates
Insperity, Inc. reported solid third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings (excluding 30 cents from non-recurring items) of $1.46 per share outpaced the consensus estimate and our estimate by 71.8% and rose 18.7% year over year.
Revenues of $1.55 billion surpassed the Zacks Consensus Estimate by 1.3% and increased 7.8% year over year. The upside was backed by an increase in the paid average number of worksite employees (WSEE).
The average number of worksite employees paid per month, which was 315,340, increased 4% year over year. Revenue per WSEE per month increased 3.7% to $1,639.
Operating Results
Gross profit grew 55% year over year to $257.9 million. Operating expenses increased 3.4% year over year to $198.5 million. Operating expenses per worksite employee per month declined slightly to $210.
Operating income increased 13% year over year to $59.5 million. Operating income per WSEE per month improved 8.6% to $63.
Adjusted EBITDA for the reported quarter was $94.3 million, up 18.2% from the year-ago figure.
Balance Sheet & Cash Flow
Insperity exited third-quarter 2023 with adjusted cash, cash equivalents and marketable securities of $678.59 million compared with $580.1 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 873,000 shares for $86 million and paid out $63 million as cash dividends. Capital expenditures totaled $8.5 million.
Q4 Guidance 2023
Adjusted EBITDA is anticipated to be between $43 million and $63 million. Average WSEEs are expected to be in the range of 316,750-318,250.The adjusted earnings per share (EPS) guidance for the second quarter is provided between 44 and 88 cents per share.
2023 Guidance
Insperity now projects adjusted earnings to be in the band of $5.2-$5.6 per share compared with the previous guidance of earnings of $4.35-$5.32 per share. Adjusted EBITDA is now anticipated to be in the range of $340-$360 million, up from the previously guided range of $300-$350 million. Average WSEEs are expected to be 312,600-312,800. Average WSEEs were previously expected to be 314,200-315,600.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, Insperity, Inc. has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile 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
Insperity, Inc. has a Zacks Rank #3 (Hold). We expect an in-line 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, Robert Half (RHI - 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 2023.
Robert Half reported revenues of $1.56 billion in the last reported quarter, representing a year-over-year change of -14.7%. EPS of $0.90 for the same period compares with $1.53 a year ago.
Robert Half is expected to post earnings of $0.81 per share for the current quarter, representing a year-over-year change of -40.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.9%.
Robert Half has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.