Overview
HR solutions provider's Q4 revenue slightly missed analyst expectations
Adjusted EPS for Q4 missed analyst expectations
Company returned $109 mln to shareholders through buybacks and dividends in 2025
Outlook
Insperity expects Q1 2026 adjusted EPS between $1.03 and $1.50
Company projects full-year 2026 adjusted EBITDA of $170 mln to $230 mln
Result Drivers
HIGHER BENEFITS COSTS - Gross profit decreased 21% due to elevated benefits costs driven by inpatient, outpatient, and pharmacy trends
OPERATING EXPENSE REDUCTION - Operating expenses decreased 6% due to reduced costs from Workday partnership and office consolidation
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Miss* | $1.67 bln | $1.68 bln (5 Analysts) |
Q4 Adjusted EPS | Miss | -$0.60 | -$0.47 (5 Analysts) |
Q4 Net Income | -$33 mln | ||
Q4 Adjusted EBITDA | Miss | -$13 mln | -$8.62 mln (5 Analysts) |
Q4 Gross Profit | $172 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the employment services peer group is "buy."
Wall Street's median 12-month price target for Insperity Inc is $37.50, about 2.2% above its February 9 closing price of $36.70
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago
Press Release: ID:nBw7KxDVLa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)