Insperity Reports Q4 2024 Results, Stock Jumps 26%

Insperity delivers impressive Q4 results, exceeding earnings and revenue estimates. With a stock surge of 26% post-results, investor interest is likely to rise.

Date: 17-02-2025

AI Rating: 5

Earnings Per Share (EPS): Insperity reported adjusted earnings of 5 cents per share, exceeding the consensus estimate by over 100%. However, this reflects a significant decline of 93.3% year over year, which raises concerns about ongoing profitability.

Revenue Growth: The company generated revenues of $1.6 billion, beating expectations by 1% and marking a 2.1% increase from the previous year. This slight growth indicates stability in revenue generation.

Net Income: The report highlights operating losses, with Insperity recording a loss of $15 million compared to an operating income of $23 million in the previous year. This drastic shift negatively impacts investor sentiment.

Profit Margins: Gross profit saw a decline of 2% to $218 million, with a gross margin of 13.5%, down 60 basis points year over year. Such a margin reduction could suggest increased operational challenges and cost pressure.

Free Cash Flow (FCF): The report does not provide specific details on free cash flow, failing to assess the company's liquidity and investment capacity.

Return on Equity (ROE): There is no mention of return on equity, leaving investors without insight into how effectively the company utilizes shareholder capital.

In contrast, S&P Global demonstrated strong performance with an adjusted EPS of $3.77, surpassing estimates and showing a notable year-over-year growth of 20.4%. This could position S&P Global attractively compared to Insperity.

Overall, despite a positive stock reaction to the earnings beat, the substantial drop in net income and profit margins raises caution for investors considering both Insperity and other companies in the same sector.

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