We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Insperity (NSP) Q4 Earnings and Revenues Beat Estimates
Read MoreHide Full Article
Insperity Inc. (NSP - Free Report) delivered fourth-quarter 2017 adjusted earnings of 55 cents per share, which improved 89.7% year over year. The figure also beat the Zacks Consensus Estimate by 9 cents.
Insperity’s revenues of $826.5 million increased 13.4% on a year-over-year basis and surpassed the Zacks Consensus Estimate of $814.1 million. Top-line growth can be attributed to 9.8% increase in average number of worksite employees paid per month.
2017 at a Glance
In 2017, earnings were $2.45 per share, up 37% over 2016. Revenues of $3.30 billion increased 12.2% on a year-over-year basis.
Average number of worksite employees paid per month increased 10% over 2016. Additionally, worksite employee retention was 85% in 2017.
Insperity’s shares have gained 44.5% in the past year, substantially outperforming the industry’s rally of 19.4%.
Operating Details
Insperity’s gross margin expanded 210 basis points (bps) from the year-ago quarter to 17.3%. Gross profit per worksite employee per month increased 17.3% to $251.
Adjusted EBITDA soared 67% year over year to $38.5 million. EBITDA per worksite employee per month surged 40.5% to $52, primarily driven by efficient price management and improved performance in benefits, workers’ compensation and payroll tax areas.
Adjusted operating expenses increased 23.2% year over year to $118.4 million. Adjusted operating expenses per worksite employee per month grew 11.8% to $208.
Balance Sheet & Share Repurchase
Insperity exited 2017 with adjusted cash, cash equivalents and marketable of $61.1 million compared with $44.9 million as on Dec 31, 2016.
The company repurchased roughly 901,000 shares at $38.7 million, issued dividends totaling $65.8 million, including both regular quarterly dividend and the $1.00 per share special dividend declared in December.
Capital expenditure of $33.3 million was incurred in 2017 compared with $34 million in the past year.
Guidance
For first-quarter 2018, Insperity projects adjusted earnings in the range of $1.12-$1.16 per share, representing a year-over-year increase of 22-26%.
Adjusted EBITDA is anticipated to increase 10-13%, in a range of $69-$71 million. Average worksite employees (WSEs) are expected in a range of 193,500 to 195,300, representing growth of 11-12%.
For 2018, Insperity projects adjusted earnings between $2.96 and $3.08 per share implying growth of 21-26%.
Adjusted EBITDA is projected to grow 11-15%, in a range of $197-$204 million. Average WSEs are expected to be in the 203,700 to 207,400 bracket, representing growth of 11.5-13.5%.
Zacks Rank & Stocks to Consider
Currently, Insperity carries a Zacks Rank #3 (Hold).
Long-term earnings growth rate for Heidrick & Struggles International, Aspen Technology and The Ultimate Software Group is projected at 15%, 1.7% and 22.1%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Insperity (NSP) Q4 Earnings and Revenues Beat Estimates
Insperity Inc. (NSP - Free Report) delivered fourth-quarter 2017 adjusted earnings of 55 cents per share, which improved 89.7% year over year. The figure also beat the Zacks Consensus Estimate by 9 cents.
Insperity’s revenues of $826.5 million increased 13.4% on a year-over-year basis and surpassed the Zacks Consensus Estimate of $814.1 million. Top-line growth can be attributed to 9.8% increase in average number of worksite employees paid per month.
2017 at a Glance
In 2017, earnings were $2.45 per share, up 37% over 2016. Revenues of $3.30 billion increased 12.2% on a year-over-year basis.
Average number of worksite employees paid per month increased 10% over 2016. Additionally, worksite employee retention was 85% in 2017.
Insperity, Inc. Price, Consensus and EPS Surprise
Insperity, Inc. Price, Consensus and EPS Surprise | Insperity, Inc. Quote
Insperity’s shares have gained 44.5% in the past year, substantially outperforming the industry’s rally of 19.4%.
Operating Details
Insperity’s gross margin expanded 210 basis points (bps) from the year-ago quarter to 17.3%. Gross profit per worksite employee per month increased 17.3% to $251.
Adjusted EBITDA soared 67% year over year to $38.5 million. EBITDA per worksite employee per month surged 40.5% to $52, primarily driven by efficient price management and improved performance in benefits, workers’ compensation and payroll tax areas.
Adjusted operating expenses increased 23.2% year over year to $118.4 million. Adjusted operating expenses per worksite employee per month grew 11.8% to $208.
Balance Sheet & Share Repurchase
Insperity exited 2017 with adjusted cash, cash equivalents and marketable of $61.1 million compared with $44.9 million as on Dec 31, 2016.
The company repurchased roughly 901,000 shares at $38.7 million, issued dividends totaling $65.8 million, including both regular quarterly dividend and the $1.00 per share special dividend declared in December.
Capital expenditure of $33.3 million was incurred in 2017 compared with $34 million in the past year.
Guidance
For first-quarter 2018, Insperity projects adjusted earnings in the range of $1.12-$1.16 per share, representing a year-over-year increase of 22-26%.
Adjusted EBITDA is anticipated to increase 10-13%, in a range of $69-$71 million. Average worksite employees (WSEs) are expected in a range of 193,500 to 195,300, representing growth of 11-12%.
For 2018, Insperity projects adjusted earnings between $2.96 and $3.08 per share implying growth of 21-26%.
Adjusted EBITDA is projected to grow 11-15%, in a range of $197-$204 million. Average WSEs are expected to be in the 203,700 to 207,400 bracket, representing growth of 11.5-13.5%.
Zacks Rank & Stocks to Consider
Currently, Insperity carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering are Heidrick & Struggles International (HSII - Free Report) , Aspen Technology (AZPN - Free Report) and The Ultimate Software Group , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Heidrick & Struggles International, Aspen Technology and The Ultimate Software Group is projected at 15%, 1.7% and 22.1%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>