Why Insperity Stock Tanked 33% On Monday


Insperity (NYSE:NSP), a company that provides human resources and administrative services to small and medium-sized businesses, saw its stock decline by over 33% on Monday. The decline follows the company’s weaker than expected Q3 2019 results. Adjusted EPS came in at $0.75, well below the consensus of about $1.01. The company indicated that this was due to a sharp increase in medical claims and lower growth than expected in paid worksite employees. The company also cut its full-year guidance, indicating that EPS would stand at between $4.08 and $4.20, compared to its previous guidance of $4.59 to $4.74. Let’s “step back” and look at past performance and what it might mean for the outlook over a longer time period.

View our interactive dashboard analysis on Why Did Insperity Stock Decline 33% On Monday?

How does Insperity’s Revenue Growth in 2018 compare with that in prior periods and what’s the forecast?

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Total Revenues for Insperity significantly increased from $3.30 Bil in 2017 to $3.83 Bil in 2018; an increase of 16.0%.

This compares with Total Revenues growth of:

  • 10.4% in 2015
  • 13.0% in 2016
  • 12.2% in 2017

We expect Total Revenues growth to be 12.1% in 2019.

How does Insperity’s Total Expense in 2018 compare with that in prior periods and what’s the forecast?

Total Expense for Insperity significantly increased from $3.17 Bil in 2017 to $3.65 Bil in 2018; an increase of 15.0%.

This compares with Total Expense growth of:

  • 9.86% in 2015
  • 11.7% in 2016
  • 11.8% in 2017

We expect Total Expense growth to be 11.9% in 2019.

How does Insperity’s EBT in 2018 compare with that in prior periods and what’s the forecast?

EBT for Insperity increased substantially by 40.1% from $130 Mil in 2017 to $182 Mil in 2018.

We expect EBT to increase by 15.5% to $210 Mil in 2019.

How do Insperity’s Net Income and EPS in 2018 compare with that in prior periods and what’s the forecast?

For more details on Insperity’s Net Income and EPS, view our interactive dashboard analysis

 

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