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Insperity's (NSP) Stock Down 15.2% Since Q4 Earnings Miss

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Insperity, Inc.NSP stock has declined 15.2% since its fourth-quarter 2021 earnings release on Feb 10. The price downfall can be attributed to lower-than-expected earnings performance.

Adjusted earnings of 34 cents per share missed the Zacks Consensus Estimate by 53.4% and decreased 30.6% year over year. The reported figure lies within the guidance of 74-93 cents.

Revenues of $1.29 billion surpassed the consensus mark by 4.9% and increased 22.2% year over year. The upside was backed by 9% increase in revenues per worksite employees (WSEEs) and 12% increase in paid worksite employees.

The average number of worksite employees paid per month, 268,978, inched up 12.4% year over year.

Over the past year, shares of Insperity have gained 13.7% compared with 29.4% growth of the industry it belongs to.

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Operating Results

Gross profit of $170.62 million increased 1.8% from the year-ago quarter. Gross margin of 13.2% declined from 15.9% in the year-ago quarter. Gross profit per worksite employee per month decreased 9.4% year over year to $211.

Adjusted EBITDA decreased 19.7% year over year to $30.39 million. Adjusted EBITDA per worksite employee per month decreased 28.3% to $38.

Operating expenses decreased 2.4% year over year to $155.95 million. Operating expenses per worksite employee per month decreased 13.1% to $193.

Operating income increased 90.4% year over year to $14.68 million. Operating income per worksite employee per month augmented 63.6% to $18.

Insperity, Inc. Price, Consensus and EPS Surprise

Insperity, Inc. Price, Consensus and EPS Surprise
Insperity, Inc. Price, Consensus and EPS Surprise

Insperity, Inc. price-consensus-eps-surprise-chart | Insperity, Inc. Quote

Balance Sheet & Cash Flow

Insperity exited fourth-quarter 2021 with adjusted cash, cash equivalents and marketable securities of $162.75 million compared with $227.57 million at the end of the prior quarter. Long-term debt amounted to $369.40 million, flat sequentially.

During the reported quarter, the company repurchased shares worth $19.9 million and paid out $94 million in cash dividends. Capital expenditures totaled $9.3 million.

Q1 Guidance

For first-quarter 2022, Insperity projects adjusted earnings of $1.56-$2.12 per share. The current Zacks Consensus Estimate of $1.90 lies within the guided range.

Adjusted EBITDA is anticipated between $95 million and $125 million. Average WSEEs are expected in the range of 275,100-277,500.

2022 Guidance

Insperity has unveiled its guidance for 2022. The company projects adjusted earnings in the band of $3.74-$4.86 per share. The current Zacks Consensus Estimate of $4.83 lies within the guidance.

Adjusted EBITDA is anticipated in the range of $251-$311 million. Average WSEEs are expected in the range of 287,100-292,200.

Currently, Insperity carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Robert Half International RHI delivered impressive fourth-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.

Robert Half’s quarterly earnings of $1.51 per share beat the consensus mark by 5.6% and rose 79.8% year over year.

Robert Half’s revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis.

Automatic Data Processing ADP reported better-than-expected second-quarter fiscal 2022 results.

ADP’s adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.

ADP’s total revenues of $4.03 billion beat the consensus mark by 1.1% and improved 9% year over year on a reported basis as well as on an organic constant-currency basis.

Rollins ROL reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same.

Rollins’ adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.

Rollins’ revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year.


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