Insperity (NSP) Gains 1.6% Post Q3 Revenue and Earnings Beat
Insperity, Inc. NSP reported solid third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Insperity’s shares have gained 1.6% since the earnings release on Oct 31 in response to the better-than-expected performance and the raised 2023 guidance. Insperity projects adjusted earnings of $5.2-$5.6 per share compared with the previously mentioned earnings of $4.35-$5.32 per share.The Zacks Consensus Estimate for earnings is pegged at $4.77 per share, which lies below the mid-point ($5.4) of the guided range. Adjusted EBITDA is anticipated to be $340-$360 million, up from the previously stated $300-$350 million.
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).
Insperity, Inc. Price, Consensus and EPS Surprise
Insperity, Inc. price-consensus-eps-surprise-chart | Insperity, Inc. Quote
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.
4Q23 Guidance
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. However, the Zacks Consensus Estimate for earnings is pegged at 62 cents per share, which lies below the midpoint (66 cents) of the guided range.
2023 Guidance
Average WSEEs are expected to be 312,600-312,800. Average WSEEs were previously expected to be 314,200-315,600.
Currently, Insperity carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
S&P Global Inc.SPGI reported impressive third-quarter results wherein earnings and revenues beat estimates.
SPGI’s adjusted EPS (excluding 88 cents from non-recurring items) of $3.21 rose 9.6% year over year and beat Zacks Consensus Estimate by 5.3%. Revenues of $3.08 billion surpassed the consensus estimate by 2% and improved 8% year over year, backed by strong performance in all divisions.
Verisk Analytics Inc. VRSK reported impressive third-quarter 2023 results wherein earnings and revenues beat estimates.
VRSK’s adjusted earnings (excluding 23 cents from non-recurring items) were $1.52 per share, beating the Zacks Consensus Estimate and increasing 4.1% from the year-ago reported figure. Such a beat was supported by strong growth in underwriting data solutions, life insurance and extreme events solutions.
Fiserv, Inc.FI reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
FI’s adjusted EPS (excluding 40 cents from non-recurring items) of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year. Organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
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Insperity, Inc. (NSP) : Free Stock Analysis Report
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