Insperity Q3 adjusted EPS jumps on reduced compensation costs
Overview
U.S. HR solutions provider's Q3 revenue rose 2%, slightly beating analyst expectations
Adjusted EPS for Q3 rose 210%, beating analyst expectations
Q3 adjusted EBITDA beat analyst expectations
Outlook
Insperity sees Q4 adjusted EPS between $0.07 and $0.42
Company expects full-year 2026 adjusted EPS of $1.93 to $2.28
Insperity forecasts Q4 adjusted EBITDA of $24 mln to $44 mln
Result Drivers
HIGHER PRICING - Q3 revenue growth was driven by increased pricing, which offset a decline in average paid worksite employees
COST REDUCTIONS - Lower operating expenses were mainly due to reduced compensation costs from a smaller corporate staff
GROSS PROFIT IMPROVEMENT - Gross profit and gross profit per worksite employee rose due to higher pricing
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $1.65 bln | $1.64 bln (5 Analysts) |
Q3 Adjusted EPS | Beat | $0.22 | $0.21 (5 Analysts) |
Q3 Net Loss | $1 mln | ||
Q3 Adjusted EBITDA | Beat | $31 mln | $30.43 mln (5 Analysts) |
Q3 Operating income | Miss | -$2 mln | $7.55 mln (3 Analysts) |
Q3 Gross Profit | $207 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the employment services peer group is "buy."
Wall Street's median 12-month price target for Insperity, Inc. is $54.06, about 4.7% above its October 28 closing price of $51.65
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)