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Insperity (NSP) Up on Worksite Employee Growth, Expenses Ail

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·3-min read
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Insperity, Inc. NSP shares have had a solid run on the bourses over the past year. The stock has appreciated 6.8% over the past year against the 4.4% decline of the industry it belongs to.

Zacks Investment Research
Zacks Investment Research


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The company recently reported first-quarter 2022 adjusted earnings of $1.99 per share, which outpaced the Zacks Consensus Estimate as well as the year-ago quarter’s figure by 9.3%. Revenues of $1.58 billion surpassed the consensus mark by 6.1% and increased 22.6% year over year.

How is Insperity Doing?

Insperity’s top-line growth is directly proportional to the rise in average number of worksite employees paid per month. In first-quarter 2022, revenues grew 22.6% year over year on the back of 3% increase in revenues per worksite employee (“WSEE”) and 19.5% increase in paid worksite employees. The average number of worksite employees paid per month, 278,660, inched up 19.5% year over year. WSEEs paid from new client sales grew 37%, backed by strong sale bookings in fourth-quarter 2021.

The company has also been consistently rewarding its shareholders. During first-quarter 2022, the company repurchased almost 308,000 shares for $27.4 million and paid out $17.2 million in cash dividends. During 2021, the company repurchased 716,000 shares for $69.7 million and paid out dividends totaling $144.2 million. During 2020, the company repurchased 1.4 million shares for $99.4 million and paid out dividends totaling $61.9 million. Such moves indicate Insperity’s commitment toward boosting shareholders’ value and underline its confidence in its business.

Insperity is seeing an increase in expenses as it continues to invest in growth, technology and marketing initiatives. During first-quarter 2022, total operating expenses of $187.38 million increased 11.8% year over year.

Zacks Rank and Stocks to Consider

Insperity currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some top-ranked stocks in the broader Business Services sector that investors can consider are Cross Country Healthcare CCRN, Gartner IT and Avis Budget CAR, each carrying a Zacks Rank #1.

Cross Country Healthcare has an expected earnings growth rate of 49.4% for the current year. It has a trailing four-quarter earnings surprise of 29.2%, on average.

Cross Country Healthcare has a long-term earnings growth of 6.9%.

Gartner’s shares have surged 5.6% in the past year. The company delivered a trailing four-quarter earnings surprise of 24.2%, on average.

The Zacks Consensus Estimate for Gartner's earnings in the current year has moved up 9.8% in the past 90 days.

Avis Budget has an expected earnings growth rate of 59.8% for the current year. The company delivered a trailing four-quarter earnings surprise of 102.1%, on average.

Avis Budget has a long-term earnings growth of 19.4%.


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