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Jun 30, 2020
Insperity Q2 2020 Earnings Report
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.
Key Takeaways
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.
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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