Insperity Stock Declines 11% After Reporting Q4 Earnings Beat

Core Viewpoint - Insperity, Inc. reported strong fourth-quarter 2024 results with earnings and revenues exceeding expectations, yet the stock declined significantly post-release due to market reactions [1][2]. Financial Performance - Adjusted earnings were 5 cents per share, surpassing the consensus estimate by over 100%, but down 93.3% year over year [2]. - Revenues reached $1.6 billion, beating the Zacks Consensus Estimate by 1% and increasing 2.1% from the previous year [2]. - Gross profit decreased by 2% year over year to $218 million, with a gross margin of 13.5%, down 60 basis points from Q4 2023 [4]. - Operating expenses rose 17% year over year to $233 million, with operating expenses per worksite employee per month increasing 19% to $251 [4]. Operational Metrics - The average number of worksite employees paid per month fell by 2% year over year to 309,093, while revenue per worksite employee per month increased by 4% to $1,739 [3]. - The company reported an operating loss of $15 million compared to an operating income of $23 million in the same quarter last year [5]. Cash Flow and Balance Sheet - Insperity ended Q4 2024 with cash and cash equivalents of $1 billion, up from $470 million in the previous quarter, while long-term debt remained stable at $369 million [6]. - The company distributed $22 million in cash dividends during the quarter, with capital expenditures totaling $13 million [6]. Guidance - For Q1 2025, Insperity's earnings guidance is set at $1.89-$2.15 per share, with the midpoint of $2.02 exceeding the Zacks Consensus Estimate of $1.98 [7]. - For the full year 2025, the company expects adjusted EPS to be in the range of $3.10-$3.95, with the midpoint of $3.53 lower than the consensus estimate of $3.80 [8].