Insperity Inc (NYSE:NSP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Insperity Inc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 5.56% to $0.51 in the quarter versus EPS of $0.54 in the year-earlier quarter.
Revenue: Rose 2.79% to $611.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.51 per share. By that measure, the company beat the mean analyst estimate of $0.5. It missed the average revenue estimate of $617.94 million.
Quoting Management: “Business owners are slowly beginning to implement business plans that they hope will take advantage of any coming economic opportunities,” said Paul J. Sarvadi, Insperity’s chairman and chief executive officer. “However, as in the previous survey, a significant number of respondents express continuing concerns about the negative impact of governmental policies on business activity.” A representative comment from one participant was, “New federal regulations make plan execution difficult because more effort is going into avoiding penalties and less into delivering the product.”
Key Stats (on next page)…
Revenue increased 14.9% from $532.44 million in the previous quarter. EPS increased 8.51% from $0.47 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.29 to a profit $0.2. For the current year, the average estimate has moved down from a profit of $1.85 to a profit of $1.51 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)