Insperity (NYSE:NSP) Releases Earnings Results, Misses Expectations By $0.15 EPS

Key Points

• Insperity reported a 26 cents EPS for the quarter, missing analyst estimates of 41 cents by 15 cents, despite revenue meeting expectations at $1.66 billion.
• The company's stock fell 24.3% following the earnings announcement, with shares trading at $45.08 and a market cap of $1.70 billion.
• Insperity declared a quarterly dividend of $0.60 per share, resulting in a 5.3% yield, while also updating full-year 2025 guidance to 1.810-2.51 EPS.

Insperity (NYSE:NSP - Get Free Report) issued its quarterly earnings results on Friday. The business services provider reported $0.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.41 by ($0.15), Briefing.com reports. Insperity had a net margin of 0.60% and a return on equity of 35.32%. The business had revenue of $1.66 billion during the quarter, compared to analyst estimates of $1.66 billion. During the same quarter in the previous year, the firm posted $0.86 earnings per share. The firm's quarterly revenue was up 3.3% on a year-over-year basis. Insperity updated its FY 2025 guidance to 1.810-2.51 EPS and its Q3 2025 guidance to 0.060-0.49 EPS.

Insperity Price Performance

Shares of NYSE:NSP traded up $0.52 during midday trading on Tuesday, hitting $48.79. The stock had a trading volume of 243,437 shares, compared to its average volume of 500,410. The company's 50-day moving average price is $60.53 and its 200-day moving average price is $73.40. The company has a market capitalization of $1.84 billion, a P/E ratio of 46.19 and a beta of 0.47. Insperity has a fifty-two week low of $44.14 and a fifty-two week high of $95.98. The company has a quick ratio of 1.13, a current ratio of 1.12 and a debt-to-equity ratio of 3.29.

Insperity Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 20th. Stockholders of record on Friday, June 6th were given a $0.60 dividend. The ex-dividend date was Friday, June 6th. This represents a $2.40 annualized dividend and a dividend yield of 4.9%. Insperity's payout ratio is presently 226.42%.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on NSP shares. Truist Financial lowered their price target on shares of Insperity from $70.00 to $50.00 and set a "hold" rating on the stock in a research note on Monday. JPMorgan Chase & Co. reduced their target price on shares of Insperity from $68.00 to $51.00 and set an "underweight" rating for the company in a report on Monday. Roth Capital reduced their target price on shares of Insperity from $85.00 to $74.00 and set a "buy" rating for the company in a report on Monday. Finally, Wall Street Zen cut shares of Insperity from a "buy" rating to a "hold" rating in a research note on Wednesday, April 30th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $58.33.

Hedge Funds Weigh In On Insperity

A number of institutional investors have recently added to or reduced their stakes in the stock. Geneos Wealth Management Inc. increased its position in Insperity by 32.2% during the 1st quarter. Geneos Wealth Management Inc. now owns 747 shares of the business services provider's stock worth $67,000 after purchasing an additional 182 shares in the last quarter. Empowered Funds LLC grew its holdings in Insperity by 59.6% during the 1st quarter. Empowered Funds LLC now owns 28,275 shares of the business services provider's stock worth $2,523,000 after acquiring an additional 10,560 shares during the last quarter. United Services Automobile Association bought a new stake in Insperity during the 1st quarter worth approximately $202,000. Goldman Sachs Group Inc. grew its holdings in Insperity by 54.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 513,785 shares of the business services provider's stock worth $45,845,000 after acquiring an additional 180,563 shares during the last quarter. Finally, Dynamic Technology Lab Private Ltd bought a new stake in Insperity during the 1st quarter worth approximately $218,000. 93.44% of the stock is currently owned by institutional investors and hedge funds.

Insperity Company Profile

Insperity, Inc engages in the provision of human resources (HR) and business solutions to improve business performance for small and medium-sized businesses primarily in the United States. It offers its HR services through its workforce optimization and workforce synchronization solutions that include a range of human resources functions, such as payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services.