NYSE$NSP

Insperity Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Insperity's financial performance demonstrated resilience and growth, marked by increased revenues and average worksite employees, despite higher benefit costs impacting profitability.

Insperity reported a 19% increase in revenue to $1.2 billion and a 7% increase in average worksite employees (WSEEs) to 243,270 for Q2 2021. Net income was $25.2 million, or $0.65 per diluted share, while adjusted EPS was $0.91. The company is focused on investing in growth and capitalizing on market opportunities.

  • Q2 average number of WSEEs paid and revenues increased by 7% and 19%, respectively.
  • Q2 net income reached $25.2 million with a diluted EPS of $0.65.
  • Adjusted EBITDA for Q2 was $60.2 million, and adjusted EPS was $0.91.
  • Client retention remained high, averaging 99% for the quarter.

Headline financials

Total Revenue

$1.19B

Previous: $993M+19.3%
EPS (adj)

$0.91

Previous: $1.54-40.9%
Average Worksite Employees Paid

243.3K

Previous: 227.9K+6.7%
Capital Expenditures

-$20.7M

Previous: -$39.5M+47.5%
Free Cash Flow

$4.45M

Previous: $12.4M-64.1%
Net Income

$25.2M

Previous: $51.9M-51.5%
Operating Income

$35.2M

Previous: $73M-51.7%
Gross Profit

$200M

Previous: $220M-9.4%
Cash & Equivalents

$455M

Previous: $459M-0.9%
Total Assets

$1.73B

Previous: $1.52B+13.9%

Revenue & EPS history

Insperity · Revenue · Quarterly

$1.19B

Q2 2021+19.3%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Insperity provided guidance for Q3 2021 and full year 2021, including average WSEEs paid, adjusted EBITDA, and adjusted EPS.

Tailwinds

  • Q3 2021 average WSEEs paid is expected to be between 253,800 and 256,100.
  • Full year 2021 average WSEEs paid is projected to be between 247,100 and 249,500.
  • Q3 2021 adjusted EPS is guided to be between $0.74 and $0.93.
  • Full year 2021 adjusted EPS is expected to be in the range of $4.00 to $4.59.
  • Q3 2021 adjusted EBITDA is forecasted to be between $52 million and $62 million.

Headwinds

  • Q3 2021 adjusted EPS is expected to decrease by 19% to 2% year-over-year.
  • Full year 2021 adjusted EPS is projected to decrease by 14% to 1% year-over-year.
  • Q3 2021 adjusted EBITDA is expected to decrease by 10% to increase by 8% year-over-year.
  • Full year 2021 adjusted EBITDA is projected to decrease by 11% to remain unchanged year-over-year.
  • Q3 2021 guidance for average WSEEs paid represents 4.3% to 5.3% sequential growth compared to Q2 2021.

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 2021

Historical avgQ2 2021

-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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