Insperity (NSP) Rides on a Diverse Revenue Base Amid High Costs
Insperity, Inc. NSP is currently benefiting from its diversified revenue base and shareholder-friendly moves.
It is a comprehensive human resources and business solutions provider, offering a wide range of HR services through PEO services known as Workforce Optimization and Workforce Synchronization solutions. The company's diversified revenue base not only ensures consistent revenue growth but also provides a safeguard against market risks.
Insperity puts consistent efforts to reward its shareholders. During 2022 and 2021, it repurchased 770,000 and 716,000 shares for $73 and $69.7 million, respectively, and paid out dividends totaling $77 and $144.2 million. During 2020, the company repurchased 1.4 million shares for $99.4 million and paid out dividends totaling $61.9 million. Such moves indicate its commitment to boosting shareholders’ value and underline its confidence in business.
Insperity's current ratio at the end of second-quarter 2023 was pegged at 1.2, higher than the prior quarter’s 1.17 and the year-ago quarter’s 1.13. A current ratio greater than 1 is desirable as it indicates that the risk of default is less.
However, the company is seeing an increase in expenses as it continues to invest in growth, technology and product and service offerings. In 2022, adjusted operating expenses of $760.99 million increased 17.7% year over year. The same rose 5.7% in 2021, 12.1% year over year in 2020 and 10.7% in 2019. Hence, the bottom line is likely to remain under pressure going forward.
Insperity reported second-quarter 2023 adjusted earnings of 64 cents per share, which missed the Zacks Consensus Estimate by 48.4% and decreased 44.8% year over year. Revenues of $1.59 billion surpassed the consensus mark by 2.6% and increased 10.7% year over year.
Earnings Snapshots of Some Other Service Providers
Omnicom OMC reported mixed second-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but rose 1.2% year over year.
Equifax EFX reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.
Interpublic’s IPG second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
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