Insperity Stock Up 26% Since Q4 Earnings Beat: Here's Why (Revised)

Core Insights - Insperity, Inc. reported strong fourth-quarter 2024 results, with earnings and revenues exceeding the Zacks Consensus Estimate [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 declined 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] - The company reported an operating loss of $15 million compared to an operating income of $23 million in the same quarter last year [5] - Adjusted EBITDA for the quarter was $23 million, a decrease of 41% year over year [5] Employee Metrics - The average number of worksite employees paid per month decreased by 2% year over year to 309,093 [3] - Revenue per worksite employee per month increased by 4% from the previous year to $1,739 [3] Balance Sheet & Cash Flow - Insperity ended Q4 2024 with cash and cash equivalents of $1 billion, up from $470 million in the previous quarter [6] - Long-term debt remained flat 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 slightly above the Zacks Consensus Estimate of $2.01 [7] - For the full year 2025, the company expects adjusted EPS to be in the range of $3.10-$3.95, with the midpoint lower than the Zacks Consensus Estimate of $3.57 [8] - Adjusted EBITDA guidance for 2025 is projected at $240-$285 million [8]