Loading...
•
Mar 31, 2024
Insperity Q1 2024 Earnings Report
Insperity's Q1 2024 performance reflected strong pricing and lower benefits costs, but was impacted by economic slowdown and client base layoffs.
Key Takeaways
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.
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.
Positive Outlook
- Expected cash flow
- Strong balance sheet
- Ongoing returns to shareholders
- Continued investment in the Workday strategic partnership
- Earnings outlook remains consistent with initial forecast
Challenges Ahead
- Weakness and uncertainty in the macro-economic environment
- Tempered expectations for worksite employee growth
- Year-over-year decrease in WSEEs paid for Q2 2024
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...