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Adjusted earnings of $1.82 per share beat the consensus mark by 16.7% and increased 7.1% year over year. The reported figure lies above the guidance of $1.37 - $1.72.
Revenues of $1.29 billion surpassed the Zacks Consensus Estimate by 6.5% and increased 4.7% year over year. The upside was backed by 7% increase in revenues per worksite employees (WSEEs), partially offset by an expected 2% decline in the average number of paid WSEEs.
The average number of worksite employees paid per month of 233,170 inched down 2%.
So far this year, shares of Insperity have gained 9% compared with 28.9% rise of the industry it belongs to.
Operating Results
Gross profit of $251.45 million increased 7.4% from the year-ago quarter. Gross margin of 19.5% improved from 19% in the year-ago quarter. Gross profit per worksite employee per month increased 9.5% year over year to $359.
Adjusted EBITDA inched up 2.9% year over year to $104.24 million. Adjusted EBITDA per worksite employee per month increased 4.9% to $149.
Operating expenses increased 12.6% year over year to $167.62 million. Operating expenses per worksite employee per month increased 15.4% to $240.
Operating income decreased 1.6% year over year to $83.82 million. Operating income per worksite employee per month grew 0.8% to $120.
Insperity exited first-quarter 2021 with adjusted cash, cash equivalents and marketable securities of $196.65 million compared with $212.05 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 340,000 shares for $29.7 million and paid out $15.5 million in cash dividends. Capital expenditures totaled $12.1 million.
Q2 Guidance
For second-quarter 2021, Insperity projects adjusted earnings in the range of 60-70 cents per share. The current Zacks Consensus Estimate of 77 cents lies above the guided range. Adjusted EBITDA is anticipated between $44 million and $49 million. Average WSEEs are expected in the range of 239,300-241,600.
2021 Guidance
Insperity raised its guidance for 2021. The company now projects adjusted earnings in the band of $3.83-$4.40 per share compared with the prior guidance of $3.27-$4.20. The current Zacks Consensus Estimate of $3.74 lies below the updated guidance.
Adjusted EBITDA is now anticipated in the range of $250-$280 million compared with the prior guidance of $225-$275 million. Average WSEEs are expected in the range of 243,600-248,300 compared with the prior guidance of 238,900-248,300.
Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and improved on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus estimate by 7.9% and improved 26.6% year over year on a reported basis as well as on a local-currency basis.
Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.
Omnicom’s(OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.
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Insperity (NSP) Beats on Q1 Earnings & Revenues, Ups View
Insperity, Inc.(NSP - Free Report) reported better-than-expected first-quarter 2021 results.
Adjusted earnings of $1.82 per share beat the consensus mark by 16.7% and increased 7.1% year over year. The reported figure lies above the guidance of $1.37 - $1.72.
Revenues of $1.29 billion surpassed the Zacks Consensus Estimate by 6.5% and increased 4.7% year over year. The upside was backed by 7% increase in revenues per worksite employees (WSEEs), partially offset by an expected 2% decline in the average number of paid WSEEs.
The average number of worksite employees paid per month of 233,170 inched down 2%.
So far this year, shares of Insperity have gained 9% compared with 28.9% rise of the industry it belongs to.
Operating Results
Gross profit of $251.45 million increased 7.4% from the year-ago quarter. Gross margin of 19.5% improved from 19% in the year-ago quarter. Gross profit per worksite employee per month increased 9.5% year over year to $359.
Adjusted EBITDA inched up 2.9% year over year to $104.24 million. Adjusted EBITDA per worksite employee per month increased 4.9% to $149.
Operating expenses increased 12.6% year over year to $167.62 million. Operating expenses per worksite employee per month increased 15.4% to $240.
Operating income decreased 1.6% year over year to $83.82 million. Operating income per worksite employee per month grew 0.8% to $120.
Insperity, Inc. Price, Consensus and EPS Surprise
Insperity, Inc. price-consensus-eps-surprise-chart | Insperity, Inc. Quote
Balance Sheet & Cash Flow
Insperity exited first-quarter 2021 with adjusted cash, cash equivalents and marketable securities of $196.65 million compared with $212.05 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 340,000 shares for $29.7 million and paid out $15.5 million in cash dividends. Capital expenditures totaled $12.1 million.
Q2 Guidance
For second-quarter 2021, Insperity projects adjusted earnings in the range of 60-70 cents per share. The current Zacks Consensus Estimate of 77 cents lies above the guided range. Adjusted EBITDA is anticipated between $44 million and $49 million. Average WSEEs are expected in the range of 239,300-241,600.
2021 Guidance
Insperity raised its guidance for 2021. The company now projects adjusted earnings in the band of $3.83-$4.40 per share compared with the prior guidance of $3.27-$4.20. The current Zacks Consensus Estimate of $3.74 lies below the updated guidance.
Adjusted EBITDA is now anticipated in the range of $250-$280 million compared with the prior guidance of $225-$275 million. Average WSEEs are expected in the range of 243,600-248,300 compared with the prior guidance of 238,900-248,300.
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
Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and improved on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus estimate by 7.9% and improved 26.6% year over year on a reported basis as well as on a local-currency basis.
Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.
Omnicom’s(OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>