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Insperity, Inc. (NSP - Free Report) reported mixed second-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.
NSP shares have declined 4.1% since its earnings release on Aug 1 despite an earnings beat.
Adjusted earnings (excluding 38 cents from non-recurring items) of 86 cents per share outpaced the consensus estimate by 17.8% and increased 34.4% year over year. Revenues of $1.6 billion missed the Zacks Consensus Estimate by a slight margin but increased 1.3% from the year-ago quarter.
The company’s stock has gained 4.9% over the past month, outperforming the marginal rise of the industry it belongs to.
The average number of worksite employees paid per month decreased 1% year over year to 306,958. Revenue per worksite employees (WSEE) per month increased 3% from the year-ago quarter to $1,743.
Gross profit increased 16% from the year-ago quarter to $260 million. The gross margin was 16.2%, up 200 basis points from the second quarter of 2023. Operating expenses increased 13% year over year to $237 million. Operating expenses per WSEE per month gained 15% on a year-over-year basis to $257 million.
Operating income rose 44% from the year-ago quarter to $23 million. Operating income per WSEE per month increased 47% year over year to $25. The operating margin was 1.4% in the reported quarter, up 40 basis points from the year-ago quarter.
Adjusted EBITDA for the reported quarter is $66 million, increased 29% on a year-over-year basis.
Balance Sheet & Cash Flow
Insperity exited second-quarter 2024 with cash and cash equivalents amounting to $676 million compared with $667 million reported in the preceding quarter. The long-term debt amounted to $369 million, flat sequentially.
In the reported quarter, NSP distributed $23 million as cash dividends. The capital expenditure totaled $6 million.
Q3 & 2024 Guidance
For the third quarter, NSP’s guidance for the adjusted EPS was reduced to 21-45 cents from the 61-83 cents mentioned at the end of the previous quarter. The Zacks Consensus Estimate for earnings of 50 cents is higher than the company’s guided range. Insperity’s guidance for adjusted EBITDA was lowered to $32-$45 million from the $53-$66 million provided in the preceding quarter.
For 2024, the company updated its adjusted EPS view to $3.33-$3.88 from the $3.17-$3.90 provided at the end of the first quarter of 2024. The mid-point ($3.61) of the company’s guided range is higher than the Zacks Consensus Estimate of $3.60. The view for adjusted EBITDA is updated to $261-$290 million from the $254-$293 million mentioned previously.
Earnings Snapshot of Some Business Services Stocks
Fiserv, Inc. (FI - Free Report) reported mixed second-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate.
FI’s adjusted earnings per share (excluding 60 cents from non-recurring items) of $2.1 outpaced the consensus mark by 1.9% and increased 17.7% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by a slight margin but rose on a year-over-year basis.
Waste Connections’ adjusted earnings (excluding 17 cents from non-recurring items) of $1.2 per share beat the Zacks Consensus Estimate by 5.1% and increased 21.6% on a year-over-year basis. Revenues of $2.2 billion surpassed the consensus estimate by 1.4% and rose 11.2% from the year-ago quarter.
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Insperity (NSP) Stock Declines 4% Despite Q2 Earnings Beat
Insperity, Inc. (NSP - Free Report) reported mixed second-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.
NSP shares have declined 4.1% since its earnings release on Aug 1 despite an earnings beat.
Adjusted earnings (excluding 38 cents from non-recurring items) of 86 cents per share outpaced the consensus estimate by 17.8% and increased 34.4% year over year. Revenues of $1.6 billion missed the Zacks Consensus Estimate by a slight margin but increased 1.3% from the year-ago quarter.
The company’s stock has gained 4.9% over the past month, outperforming the marginal rise of the industry it belongs to.
The average number of worksite employees paid per month decreased 1% year over year to 306,958. Revenue per worksite employees (WSEE) per month increased 3% from the year-ago quarter to $1,743.
Insperity, Inc. Price and EPS Surprise
Insperity, Inc. price-eps-surprise | Insperity, Inc. Quote
Operating Results
Gross profit increased 16% from the year-ago quarter to $260 million. The gross margin was 16.2%, up 200 basis points from the second quarter of 2023. Operating expenses increased 13% year over year to $237 million. Operating expenses per WSEE per month gained 15% on a year-over-year basis to $257 million.
Operating income rose 44% from the year-ago quarter to $23 million. Operating income per WSEE per month increased 47% year over year to $25. The operating margin was 1.4% in the reported quarter, up 40 basis points from the year-ago quarter.
Adjusted EBITDA for the reported quarter is $66 million, increased 29% on a year-over-year basis.
Balance Sheet & Cash Flow
Insperity exited second-quarter 2024 with cash and cash equivalents amounting to $676 million compared with $667 million reported in the preceding quarter. The long-term debt amounted to $369 million, flat sequentially.
In the reported quarter, NSP distributed $23 million as cash dividends. The capital expenditure totaled $6 million.
Q3 & 2024 Guidance
For the third quarter, NSP’s guidance for the adjusted EPS was reduced to 21-45 cents from the 61-83 cents mentioned at the end of the previous quarter. The Zacks Consensus Estimate for earnings of 50 cents is higher than the company’s guided range. Insperity’s guidance for adjusted EBITDA was lowered to $32-$45 million from the $53-$66 million provided in the preceding quarter.
For 2024, the company updated its adjusted EPS view to $3.33-$3.88 from the $3.17-$3.90 provided at the end of the first quarter of 2024. The mid-point ($3.61) of the company’s guided range is higher than the Zacks Consensus Estimate of $3.60. The view for adjusted EBITDA is updated to $261-$290 million from the $254-$293 million mentioned previously.
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 of Some Business Services Stocks
Fiserv, Inc. (FI - Free Report) reported mixed second-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate.
FI’s adjusted earnings per share (excluding 60 cents from non-recurring items) of $2.1 outpaced the consensus mark by 1.9% and increased 17.7% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by a slight margin but rose on a year-over-year basis.
Waste Connections, Inc. (WCN - Free Report) reported solid second-quarter 2024 results.
Waste Connections’ adjusted earnings (excluding 17 cents from non-recurring items) of $1.2 per share beat the Zacks Consensus Estimate by 5.1% and increased 21.6% on a year-over-year basis. Revenues of $2.2 billion surpassed the consensus estimate by 1.4% and rose 11.2% from the year-ago quarter.