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Insperity Stock Declines 11% After Reporting Q4 Earnings Beat

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Insperity, Inc. (NSP - Free Report) reported impressive fourth-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

See Zacks Earnings Calendar to stay ahead of market-making news.

The company’s earnings and revenue beat failed to impress the market as the stock declined 11.3% since the release of results on Feb 10, 2025.

Adjusted earnings (excluding 27 cents from non-recurring items) of 5 cents per share outpaced the consensus estimate by more than 100% but decreased 93.3% year over year. Revenues of $1.6 billion beat the Zacks Consensus Estimate by 1% and increased 2.1% from the year-ago quarter.

The company’s stock has gained 10.2% over the past three months against the 12.6% fall of its industry and outperforming the 1.7% rise of the Zacks S&P 500 composite.

The average number of worksite employees paid per month decreased 2% year over year to 309,093. Revenue per worksite employees (WSEE) per month increased 4% from the year-ago quarter to $1,739.

Insperity, Inc. Price, Consensus and EPS Surprise

 

Insperity’s Q4 Operating Results

Gross profit declined 2% from the year-ago quarter to $218 million. The gross margin was 13.5%, down 60 basis points from the fourth quarter of 2023. Operating expenses increased 17% year over year to $233 million. Operating expenses per WSEE per month gained 19% on a year-over-year basis to $251.

NSP reported an operating loss of $15 million against the operating income of $23 million in the year-ago quarter. The company witnessed an operating loss per WSEE per month of $16 against an operating income per WSEE per month of $24 in the year-ago quarter. Adjusted EBITDA for the reported quarter is $23 million, decreasing 41% on a year-over-year basis.

Balance Sheet & Cash Flow of NSP

Insperity exited fourth-quarter 2024 with cash and cash equivalents of $1 billion compared with $470 million in the preceding quarter. The long-term debt was $369 million, flat sequentially.

In the reported quarter, NSP distributed $22 million as cash dividends. The capital expenditure totaled $13 million.

NSP’s Q1 & 2025 Guidance

For the first quarter, Insperity’s guidance for the bottom line was $1.89-$2.15 per share. The mid-point ($2.02) of the guided range is higher than the Zacks Consensus Estimate for earnings of $1.98 per share. Insperity’s view for adjusted EBITDA was $121-$135 million.

For 2025, the company expects the adjusted earnings per share (EPS) to be $3.10-$3.95. The mid-point ($3.53) of the company’s guidance range is lower than the Zacks Consensus Estimate for earnings of $3.80 per share. The adjusted EBITDA view is $240-$285 million.

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

Earnings Snapshot

S&P Global Inc. (SPGI - Free Report) reported impressive fourth-quarter 2024 results.

SPGI’s adjusted EPS of $3.77 surpassed the Zacks Consensus Estimate by 9.6% and gained 20.4% year over year. Revenues of $3.6 billion beat the consensus estimate by 2.9% and grew 15.1% year over year.

Corpay (CPAY - Free Report) posted mixed fourth-quarter 2024 results.

CPAY’s EPS of $5.36 beat the consensus estimate by a slight margin and increased 20.7% year over year. The total revenues of $1 billion missed the consensus estimate by 1.5% but grew 10.4% from the year-ago quarter.


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