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Insperity, Inc. (NSP - Free Report) reported solid fourth-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
However, the company's shares have barely moved since its earnings release on Feb 8 despite an impressive earnings and revenue performance in the fourth quarter of 2023.
Adjusted earnings (excluding 6 cents from non-recurring items) of 46 cents per share outpaced the consensus estimate and our estimate by 21.1% but declined 53.5% year over year.
Revenues of $1.58 billion surpassed the Zacks Consensus Estimate by a slight margin and increased 6.1% 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 315,072, increased 2.5% year over year. Revenue per WSEE per month increased 3.7% to $1,672.
Operating Results
Gross profit declined 7.9% year over year to $222.1 million. Operating expenses increased 5.1% year over year to $199.82 million. The Gross Profit margin was 14.05%. Operating expenses per worksite employee per month declined 2.4% to $211.
Operating income increased 13% year over year to $22.27 million. Operating income per WSEE per month declined 56.4% year over year to $24. Operating margin was 1.41% in the reported quarter.
Adjusted EBITDA for the reported quarter was $56 million, down from the year-ago reported figure of $78.9 million.
Balance Sheet & Cash Flow
Insperity exited fourth-quarter 2023 with adjusted cash, cash equivalents and marketable securities of $692.87 million compared with $678.59 million at the end of the prior quarter. Long-term debt amounted to $369.40 million, flat sequentially.
During the reported quarter, NSP distributed $21.2 million as cash dividends. Capital expenditures totaled $17.6 million.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure. Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well as on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected third-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
Waste Management Inc. (WM - Free Report) reported impressive fourth-quarter 2023 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $1.74 surpassed the Zacks Consensus Estimate by 13.7% and improved 33.9% year over year. Total revenues of $5.2 billion beat the consensus estimate by a slight margin and increased 5.7% year over year.
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Insperity (NSP) Stock Barely Moves Despite Q4 Earnings Beat
Insperity, Inc. (NSP - Free Report) reported solid fourth-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
However, the company's shares have barely moved since its earnings release on Feb 8 despite an impressive earnings and revenue performance in the fourth quarter of 2023.
Adjusted earnings (excluding 6 cents from non-recurring items) of 46 cents per share outpaced the consensus estimate and our estimate by 21.1% but declined 53.5% year over year.
Insperity, Inc. Price, Consensus and EPS Surprise
Insperity, Inc. price-consensus-eps-surprise-chart | Insperity, Inc. Quote
Revenues of $1.58 billion surpassed the Zacks Consensus Estimate by a slight margin and increased 6.1% 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 315,072, increased 2.5% year over year. Revenue per WSEE per month increased 3.7% to $1,672.
Operating Results
Gross profit declined 7.9% year over year to $222.1 million. Operating expenses increased 5.1% year over year to $199.82 million. The Gross Profit margin was 14.05%. Operating expenses per worksite employee per month declined 2.4% to $211.
Operating income increased 13% year over year to $22.27 million. Operating income per WSEE per month declined 56.4% year over year to $24. Operating margin was 1.41% in the reported quarter.
Adjusted EBITDA for the reported quarter was $56 million, down from the year-ago reported figure of $78.9 million.
Balance Sheet & Cash Flow
Insperity exited fourth-quarter 2023 with adjusted cash, cash equivalents and marketable securities of $692.87 million compared with $678.59 million at the end of the prior quarter. Long-term debt amounted to $369.40 million, flat sequentially.
During the reported quarter, NSP distributed $21.2 million as cash dividends. Capital expenditures totaled $17.6 million.
Currently, Insperity carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure. Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well as on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected third-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
Waste Management Inc. (WM - Free Report) reported impressive fourth-quarter 2023 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $1.74 surpassed the Zacks Consensus Estimate by 13.7% and improved 33.9% year over year. Total revenues of $5.2 billion beat the consensus estimate by a slight margin and increased 5.7% year over year.