NYSE$NSP

Insperity Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Insperity's Q1 2024 performance reflected strong pricing and lower benefits costs, but was impacted by economic slowdown and client base layoffs.

Insperity reported a 2% increase in revenue to $1.8 billion and net income of $79 million, with diluted EPS of $2.08. The company experienced a 1% decrease in average worksite employees paid, but gross profit increased by 4% due to strong pricing and lower benefits costs. The company also repurchased 233,000 shares for $23 million and paid $21 million in dividends.

  • Average number of WSEEs paid decreased 1% year-over-year, within the expected range.
  • Gross profit increased 4% to $345 million due to strong pricing and lower-than-expected benefits costs.
  • Net income reached $79 million, with diluted EPS at $2.08.
  • Adjusted EPS was $2.27 and adjusted EBITDA was $142 million.

Headline financials

Total Revenue

$1.8B

Previous: $1.77B+1.8%
EPS

$2.08

Previous: $2.67-22.1%
Average Worksite Employees Paid

303.9K

Previous: 306.7K-0.9%
Capital Expenditures

-$5M

Previous: -$6.85M+27.0%
Free Cash Flow

$74M

Previous: $87.7M-15.7%
Net Income

$79M

Previous: $94.6M-16.5%
Operating Income

$108M

Previous: $121M-10.7%
Gross Profit

$345M

Previous: $332M+3.9%
Cash & Equivalents

$667M

Previous: $697M-4.2%
Total Assets

$2.13B

Previous: $2.04B+4.2%
Stock-Based Comp

$10M

Previous: $11M-9.1%

Revenue & EPS history

Insperity · Revenue · Quarterly

$1.8B

Q1 2024+1.8%vs Q1 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Insperity updated its guidance for 2024, including the second quarter of 2024. The company expects average WSEEs paid to be between 306,600 and 309,700 for Q2 2024 and between 312,100 and 318,400 for the full year. Adjusted EPS is expected to be between $0.61 and $0.83 for Q2 2024 and between $3.17 and $3.90 for the full year. Adjusted EBITDA is expected to be between $53 million and $66 million for Q2 2024 and between $254 million and $293 million for the full year.

Tailwinds

  • Expected cash flow
  • Strong balance sheet
  • Ongoing returns to shareholders
  • Continued investment in the Workday strategic partnership
  • Earnings outlook remains consistent with initial forecast

Headwinds

  • Weakness and uncertainty in the macro-economic environment
  • Tempered expectations for worksite employee growth
  • Year-over-year decrease in WSEEs paid for Q2 2024
  • Year-over-year decrease in Adjusted EPS for Q2 and full year 2024
  • Year-over-year decrease in Adjusted EBITDA for full year 2024

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-1.2%

Avg return

Earnings day

-2.5%

Avg return

5 days after

-2.1%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+17.6%

Q1 2016

Best reaction

-34.2%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.4%-23.2%-7.8%
Q4 2025-10.9%-23.7%-40.0%
Q3 2025-18.0%-24.9%-20.3%
Q1 2025-14.5%-14.9%-17.1%
Q4 2024+16.2%+26.0%+26.0%
Q3 2024-7.3%-5.9%-2.8%
Q2 2024-6.9%-9.1%-8.5%
Q1 2024+0.2%-0.2%-8.0%
Q4 2023-14.8%-18.4%-10.7%
Q3 2023+7.8%+12.5%+17.9%
Q2 2023-18.1%-20.0%-13.9%
Q1 2023+1.6%+2.3%-8.0%
Q4 2022+5.6%+6.6%+6.1%
Q3 2022+12.6%+5.7%+10.6%
Q2 2022-0.8%-0.4%-0.7%
Q1 2022+9.6%+7.2%-0.5%
Q4 2021-17.0%-14.6%-21.5%
Q3 2021-1.4%-2.6%-9.8%
Q2 2021+1.4%+2.9%+11.6%
Q1 2021+0.4%+1.5%+1.4%
Q4 2020-9.3%-12.5%+6.7%
Q3 2020+11.0%+13.5%+13.5%
Q2 2020+3.9%+4.4%+4.1%
Q1 2020+12.6%+15.4%+22.3%
Q4 2019-17.1%-15.0%-41.9%
Q3 2019-34.2%-36.0%-28.1%
Q2 2019-26.4%-29.1%-33.7%
Q1 2019-2.4%-1.0%-7.8%
Q4 2018+12.1%+17.0%+11.4%
Q3 2018+1.2%+3.2%-8.9%
Q2 2018+7.0%+11.9%+26.0%
Q1 2018+7.7%+8.3%+19.9%
Q4 2017+7.5%+10.0%+20.5%
Q3 2017+8.4%+9.9%+20.7%
Q2 2017+11.0%+11.6%+6.4%
Q1 2017-4.7%-9.3%-17.4%
Q4 2016+15.5%+14.9%+22.7%
Q3 2016-13.6%-10.0%-5.5%
Q2 2016-12.8%-12.8%-16.5%
Q1 2016+17.6%
Q4 2015+12.6%
Q3 2015-7.1%
Q2 2015-6.0%
Q1 2015+11.9%
Q4 2014+8.1%
Q3 2014+4.0%
Q2 2014-4.5%
Q1 2014-1.1%
Q4 2013-15.7%
Q3 2013-8.7%
Q2 2013+1.3%
Q1 2013+0.5%
Q4 2012-16.1%
Q3 2012+7.1%
Q2 2012-8.6%
Q1 2012-7.9%
Q4 2011+3.7%
Q3 2011-1.8%
Q2 2011-6.4%
Q1 2010+6.4%
Q1 2011+1.7%
Q4 2008-2.3%
Q4 2010-2.3%
Q3 2009+6.4%
Q3 2010+6.4%
Q2 2010-3.2%
Q4 2009-3.2%
Q2 2009-3.2%

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