NYSE$NSP

Insperity Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Insperity's financial performance rebounded strongly, with revenue and average WSEEs paid increasing. Net income and adjusted EPS also saw significant growth.

Insperity reported strong Q3 2023 results, with revenues up 7.8% to $1.6 billion and a 4.0% increase in average worksite employees (WSEEs) paid. Net income rose by 18% to $44.3 million, and adjusted EPS increased by 18.7% to $1.46. The company also updated its 2023 guidance, projecting continued growth.

  • Q3 average number of WSEEs paid and revenues up 4% and 8%, respectively
  • Q3 net income and diluted EPS up 18% to $44.3 million and $1.16, respectively
  • Q3 adjusted EBITDA up 18% to $94.3 million; adjusted EPS up 19% to $1.46
  • Return to shareholders of $194.4 million in YTD period through the repurchase of 1,259,000 shares at a cost of $131.4 million and $63.0 million in cash dividends

Headline financials

Total Revenue

$1.55B

Previous: $1.44B+7.8%
EPS (adj)

$1.46

Previous: $1.23+18.7%
Average Worksite Employees Paid

315.3K

Previous: 303.3K+4.0%
Capital Expenditures

-$22.5M

Previous: -$16.4M-37.0%
Free Cash Flow

$21.8M

Previous: $21.2M+2.8%
Net Income

$44.3M

Previous: $37.7M+17.7%
Operating Income

$59.5M

Previous: $52.6M+13.0%
Gross Profit

$258M

Previous: $245M+5.5%
Cash & Equivalents

$679M

Previous: $562M+20.7%
Total Assets

$2B

Previous: $1.78B+12.1%
Stock-Based Comp

$15.7M

Previous: $38.8M-59.6%

Revenue & EPS history

Insperity · Revenue · Quarterly

$1.55B

Q3 2023+7.8%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Insperity provided updated guidance for Q4 2023 and full year 2023.

Tailwinds

  • Q4 Average WSEEs paid: 316,750—318,250
  • Q4 Year-over-year increase: 3.0%—3.5%
  • Q4 Adjusted EPS: $0.44—$0.82
  • Q4 Adjusted EBITDA (in millions): $43—$63
  • Full Year Adjusted EBITDA (in millions): $340—$360

Headwinds

  • Q4 Year-over-year decrease Adjusted EPS: (64%)—(32%)
  • Q4 Adjusted EBITDA Year-over-year increase (decrease): (45%)—(20%)
  • Full Year 2023Average WSEEs paid: 312,600—312,800
  • Full Year Adjusted EPS: $5.20—$5.60
  • Full Year Adjusted EBITDA Year-over-year increase (decrease): (3%)—2%

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 Q3 2023

Historical avgQ3 2023

-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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