Insperity (NSP) Stock Barely Moves After Q2 Earnings Miss
Insperity, Inc. NSP reported solid second-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings (excluding 31 cents from non-recurring items) of 64 cents per share missed the Zacks Consensus Estimate by 48.4% and declined 44.8% year over year. Revenues of $1.59 billion surpassed the consensus estimate by 2.6% and increased 10.7% year over year.
The average number of worksite employees paid per month was 311,304, increasing 7.2% year over year and beating our estimate of 311,262.
The market seems to be unimpressed by the results as the shares have not moved since the earnings release on Aug 1.
Operating Results
Gross profit declined 6.3% year over year to $224.6 million. Operating expenses increased 9% year over year to $208.8 million, beating our estimated $199.6 million. Operating expenses per worksite employee per month rose 1.8% to $224.
Insperity, Inc. Price, Consensus and EPS Surprise
Insperity, Inc. price-consensus-eps-surprise-chart | Insperity, Inc. Quote
Operating income decreased 67.3% year over year to $15.8 million. Operating income per WSEE per month improved 69.1% to $17.
Balance Sheet & Cash Flow
Insperity exited second-quarter 2023 with adjusted cash, cash equivalents and marketable securities of $580.1 million, compared with $732.1 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 289,000 shares for $35 million and paid out $20 million as cash dividends. Capital expenditures totaled $7.2 million.
Q3 Guidance 2023
Adjusted EBITDA is anticipated to be between $57 million and $81 million, down from the prior range of $81 million and $90 million. Average WSEEs are expected in the range of 315,500-317,000.
The adjusted earnings per share guidance for the third quarter is provided between 69 and $1.14, down from the prior range of $1.16 and $1.32. However, the Zacks Consensus Estimate for earnings is pegged at $0.91 per share, which matches the midpoint of the guided range.
2023 Guidance
Insperity now projects adjusted earnings in the band of $4.35-$5.32 per share, down from the prior guidance of $5.62-$6.39 per share. The current Zacks Consensus Estimate is pegged at $5.06 per share which lies above the midpoint ($4.84) of the guided range. Adjusted EBITDA is now anticipated in the range of $300-350 million, down from the previously expected $370-$410 million. Average WSEEs are expected to be 314,200-315,600.
Currently, Insperity carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Interpublic Group of CompaniesIPG second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same. Adjusted earnings (considering 6 cents from non-recurring items) came in at 74 cents per share, beating the 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.
EquifaxEFX reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. Adjusted earnings (excluding 59 cents from non-recurring items) 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% while matching the year-ago figure on a reported basis. The top line gained 1% on a local-currency basis.
ManpowerGroupMAN reported lower-than-expected results. Second-quarter adjusted earnings of $1.58 per share lagged the Zacks Consensus Estimate by 1.9% and declined 32.2% year over year, owing to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.9 billion missed the consensus mark by 0.6% and decreased 4.3% year over year on a reported basis. The same decreased 3% on a constant-currency basis.
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Insperity, Inc. (NSP) : Free Stock Analysis Report
