The chart below shows how NSP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NSP sees a +4.19% change in stock price 10 days leading up to the earnings, and a +0.53% change 10 days following the report. On the earnings day itself, the stock moves by +0.17%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong EPS Performance: Insperity reported adjusted EPS of $0.05 for Q4 2024, exceeding expectations of $0.02, indicating strong financial performance.
Adjusted EBITDA Performance: Adjusted EBITDA for the full year 2024 was $270 million, surpassing the midpoint of initial guidance, reflecting effective cost management and operational efficiency.
Gross Profit Growth: Gross profit per worksite employee increased by 3% to $285 in 2024 compared to 2023, driven by strong pricing performance and favorable benefits claims experience.
Client Acquisition Success: The company achieved a 37% increase in worksite employees paid from new clients in Q4 2024 compared to Q4 2023, demonstrating effective sales strategies and client acquisition efforts.
Shareholder Value Commitment: Insperity returned $34 million to shareholders in Q4 2024 through dividends and share repurchases, highlighting a commitment to shareholder value.
Negative
Employee Count Decline: Decrease in paid worksite employees by 2% from Q4 2023, reflecting weak client hiring during the quarter.
Gross Profit Decline: Total gross profit declined by 2% from Q4 2023 due to the decrease in paid worksite employees.
Operating Expenses Increase: Operating expenses increased by 17% over Q4 2023, primarily due to investments in the Workday strategic partnership.
Worksite Employee Growth Stagnation: Net growth in worksite employees for 2024 was nearly flat, the lowest level of hiring seen in at least the last twenty years, excluding recession years.
Adjusted EPS Forecast Decline: Forecast for 2025 adjusted EPS is expected to decrease by about $0.06 per share due to an increase in the income tax rate driven by lower stock price.
Insperity, Inc. (NYSE:NSP) Q4 2024 Earnings Call Transcript
NSP.N
0.31%