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The earnings beat impressed the market as the stock gained 5.3% since the release of results on Oct. 31, 2024.
Adjusted earnings (excluding 32 cents from non-recurring items) of 39 cents per share outpaced the consensus estimate by 21.9% but decreased 73.3% year over year. Revenues of $1.6 billion missed the Zacks Consensus Estimate by a slight margin but increased from the year-ago quarter’s actual.
The company’s stock has declined 10% over the past three months against the 8.4% rise of the industry it belongs to and a 12% rally of the Zacks S&P 500 composite.
Three Months Price Performance
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The average number of worksite employees paid per month decreased 2% year over year to 309,088. Revenue per worksite employees (WSEE) per month increased 3% from the year-ago quarter to $1,683.
Insperity’s Operating Results
Gross profit declined 11% from the year-ago quarter to $229 million. The gross margin was 14.7%, down 190 basis points from the third quarter of 2023. Operating expenses increased 15% year over year to $228 million. Operating expenses per WSEE per month gained 17% on a year-over-year basis to $246 million.
Operating income decreased 98% from the year-ago quarter to $1 million. Operating income per WSEE per month declined 98% year over year to $1. Adjusted EBITDA for the reported quarter is $39 million, decreased 58.6% on a year-over-year basis.
Balance Sheet & Cash Flow of NSP
Insperity exited third-quarter 2024 with cash and cash equivalents of $470 million compared with the $676 million reported in the preceding quarter. The long-term debt was $369 million, flat sequentially.
In the reported quarter, NSP distributed $23 million as cash dividends. The capital expenditure totaled $14 million.
NSP’s Q4 & 2024 Guidance
For the fourth quarter, NSP’s guidance for the bottom line was between a loss of 10 cents per share and earnings of 12 cents. The mid-point (a penny) of the revised guidance range is lower than the Zacks Consensus Estimate for earnings of 10 cents. Insperity’s view for adjusted EBITDA was $15-$27 million.
For 2024, the company updated its adjusted EPS view to $3.42-$3.66 from the $3.33-$3.88 provided at the end of the second quarter of 2024. The mid-point ($3.54) of the company’s guidance range is lower than the Zacks Consensus Estimate of $3.56. The view for adjusted EBITDA is updated to $262-$274 million from the $261-$290 million mentioned previously.
IQV’s adjusted earnings were $2.8 per share, outpacing the Zacks Consensus Estimate by 1.1% and rising 2.3% on a year-over-year basis. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1 and grew 4.3% from the year-ago quarter.
RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.8 outpaced the Zacks Consensus Estimate by 11.7% and grew 17.5% from the year-ago quarter. Revenues of $4.1 billion missed the consensus mark by a slight margin but increased 6.5% on a year-over-year basis.
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Insperity Stock Appreciates 5% After Reporting Q3 Earnings Beat
Insperity, Inc. (NSP - Free Report) reported mixed third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.
See Zacks Earnings Calendar to stay ahead of market-making news.
The earnings beat impressed the market as the stock gained 5.3% since the release of results on Oct. 31, 2024.
Adjusted earnings (excluding 32 cents from non-recurring items) of 39 cents per share outpaced the consensus estimate by 21.9% but decreased 73.3% year over year. Revenues of $1.6 billion missed the Zacks Consensus Estimate by a slight margin but increased from the year-ago quarter’s actual.
The company’s stock has declined 10% over the past three months against the 8.4% rise of the industry it belongs to and a 12% rally of the Zacks S&P 500 composite.
Three Months Price Performance
The average number of worksite employees paid per month decreased 2% year over year to 309,088. Revenue per worksite employees (WSEE) per month increased 3% from the year-ago quarter to $1,683.
Insperity’s Operating Results
Gross profit declined 11% from the year-ago quarter to $229 million. The gross margin was 14.7%, down 190 basis points from the third quarter of 2023. Operating expenses increased 15% year over year to $228 million. Operating expenses per WSEE per month gained 17% on a year-over-year basis to $246 million.
Operating income decreased 98% from the year-ago quarter to $1 million. Operating income per WSEE per month declined 98% year over year to $1. Adjusted EBITDA for the reported quarter is $39 million, decreased 58.6% on a year-over-year basis.
Balance Sheet & Cash Flow of NSP
Insperity exited third-quarter 2024 with cash and cash equivalents of $470 million compared with the $676 million reported in the preceding quarter. The long-term debt was $369 million, flat sequentially.
In the reported quarter, NSP distributed $23 million as cash dividends. The capital expenditure totaled $14 million.
NSP’s Q4 & 2024 Guidance
For the fourth quarter, NSP’s guidance for the bottom line was between a loss of 10 cents per share and earnings of 12 cents. The mid-point (a penny) of the revised guidance range is lower than the Zacks Consensus Estimate for earnings of 10 cents. Insperity’s view for adjusted EBITDA was $15-$27 million.
For 2024, the company updated its adjusted EPS view to $3.42-$3.66 from the $3.33-$3.88 provided at the end of the second quarter of 2024. The mid-point ($3.54) of the company’s guidance range is lower than the Zacks Consensus Estimate of $3.56. The view for adjusted EBITDA is updated to $262-$274 million from the $261-$290 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 NSP’s Peers
IQVIA Holdings Analytics Inc. (IQV - Free Report) reported impressive third-quarter 2024 results.
IQV’s adjusted earnings were $2.8 per share, outpacing the Zacks Consensus Estimate by 1.1% and rising 2.3% on a year-over-year basis. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1 and grew 4.3% from the year-ago quarter.
Republic Services, Inc. (RSG - Free Report) posted mixed third-quarter 2024 results.
RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.8 outpaced the Zacks Consensus Estimate by 11.7% and grew 17.5% from the year-ago quarter. Revenues of $4.1 billion missed the consensus mark by a slight margin but increased 6.5% on a year-over-year basis.