NYSE$NSP

Insperity Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Insperity's financial performance for Q2 2020 showed significant increases in net income and EPS, driven by favorable cost trends and effective management amidst COVID-19 disruptions.

Insperity reported strong Q2 2020 results with net income and diluted EPS up 82% and 93%, respectively. Adjusted EPS increased by 86% and adjusted EBITDA by 62%. Revenue decreased by 5% due to a decline in paid worksite employees and payroll tax deferrals and credits.

  • Net income and diluted EPS increased by 82% and 93%, respectively.
  • Adjusted EPS rose by 86% to $1.54.
  • Adjusted EBITDA increased by 62% to $92 million.
  • Revenue decreased by 5% to $993.4 million due to decline in paid worksite employees and payroll tax deferrals.

Headline financials

Total Revenue

$993M

Previous: $1.04B-4.8%
EPS (adj)

$1.54

Previous: $0.83+85.5%
Average Worksite Employees Paid

227.9K

Previous: 232.0K-1.8%
Capital Expenditures

-$39.5M

Previous: -$17.2M-129.4%
Free Cash Flow

$12.4M

Previous: $11.3M+9.1%
Net Income

$51.9M

Previous: $28.6M+81.6%
Operating Income

$73M

Previous: $38.7M+88.5%
Gross Profit

$220M

Previous: $174M+26.8%
Cash & Equivalents

$459M

Previous: $325M+41.4%
Total Assets

$1.52B

Previous: $1.32B+15.2%

Revenue & EPS history

Insperity · Revenue · Quarterly

$993M

Q2 2020-4.8%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Insperity provided updated guidance for Q3 2020 and full year 2020, anticipating a shift in healthcare utilization timing and continued impact from the pandemic.

Tailwinds

  • Q3 2020 average WSEEs paid guidance represents flat to 1% sequential growth compared to Q2 2020.
  • Full year 2020 average WSEEs paid expected between 228,500 and 233,200.
  • Full year 2020 Adjusted EPS expected between $3.67 and $4.04.
  • Full year 2020 Adjusted EBITDA expected between $235 million and $255 million.
  • Company anticipates increased demand for premium HR services.

Headwinds

  • Q3 2020 adjusted EPS expected between $0.37 and $0.54, a year-over-year decrease of (51)% to (28)%.
  • Q3 2020 adjusted EBITDA expected between $29 million and $38 million, a year-over-year decrease of (43)% to (26)%.
  • Full year 2020 Adjusted EPS expected to decrease (12)% to (3)% year-over-year.
  • Full year 2020 Adjusted EBITDA expected to increase (6)% to 2% year-over-year.
  • Guidance reflects expected shift in the timing of health care utilization during the pandemic from Q2 2020 into the latter half of 2020.

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 Q2 2020

Historical avgQ2 2020

-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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