NYSE$NSP

Insperity Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Insperity reported an 11% increase in revenue for Q4 2019, driven by a 10% growth in worksite employees. Diluted EPS was $0.51, and adjusted EPS was $0.57. Net income was $20.4 million, and adjusted EBITDA reached $40.7 million.

Insperity's Q4 2019 results showed revenue growth of 11% year-over-year, driven by a 10% increase in worksite employees. However, net income and adjusted EBITDA decreased by 17% and 14%, respectively, compared to the fourth quarter of 2018. The company continues to address challenges related to healthcare claim costs.

  • Q4 revenue increased by 11% due to a 10% rise in worksite employees.
  • Q4 diluted EPS was $0.51, while adjusted EPS reached $0.57.
  • Q4 net income was $20.4 million, and adjusted EBITDA amounted to $40.7 million.
  • New health insurance policy feature added to help mitigate large claim risk in 2020.

Headline financials

Total Revenue

$1.08B

Previous: $967M+11.2%
EPS (adj)

$0.57

Previous: $0.69-17.4%
Average Worksite Employees Paid

243.7K

Previous: 221.8K+9.9%
Gross Billings

$7.41B

No prior period
Capital Expenditures

$20.3M

Previous: $13.8M+47.3%
Free Cash Flow

$138M

Previous: $100M+37.3%
Net Income

$20.4M

Previous: $24.7M-17.3%
Operating Income

$27.7M

Previous: $32.6M-15.0%
Gross Profit

$162M

Previous: $162M+0.2%
Cash & Equivalents

$367M

Previous: $327M+12.4%
Total Assets

$1.39B

Previous: $1.19B+17.0%
Stock-Based Comp

$24M

Previous: $20.4M+17.5%

Revenue & EPS history

Insperity · Revenue · Quarterly

$1.08B

Q4 2019+11.2%vs Q4 2018
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Insperity provided guidance for Q1 2020 and Full Year 2020, including average WSEEs, Adjusted EPS and Adjusted EBITDA.

Tailwinds

  • Q1 2020 Average WSEEs between 238,000 and 240,200
  • Q1 2020 Adjused EPS between $1.61 and $1.70
  • Q1 2020 Adjusted EBITDA between $98 million and $103 million
  • Full Year 2020 Average WSEEs between 249,700 and 254,400
  • Full Year 2020 Adjusted EBITDA between $250 million and $274 million

Headwinds

  • Q1 2020 Adjusted EPS year-over-year increase (decrease) between (18.7)% and (14.1)%
  • Q1 2020 Adjusted EBITDA year-over-year increase (decrease) between (3.4)% and 1.5%
  • Full Year 2020 Adjusted EPS year-over-year increase (decrease) (10)%
  • The higher effective tax rate is expected to reduce both our Q1 and full year 2020 earnings by approximately $0.28 per share.
  • Full Year 2020 Adjusted EPS between $3.73 and $4.16

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 Q4 2019

Historical avgQ4 2019

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro