HR outsourcer Insperity's Q3 EPS misses estimates

Insperity

03/11/2025 21:44

Overview

Insperity Q3 revenue grows 4% yr/yr but misses analyst expectations

Adjusted EPS for Q3 misses consensus, reflecting elevated healthcare costs

Company extends UnitedHealthcare contract through 2028 for cost savings and strategic alignment

Outlook

Insperity sees Q4 2025 adjusted EPS between $(0.79) and $(0.16)

Company expects full-year 2025 adjusted EPS of $0.84 to $1.47

Insperity anticipates 2025 adjusted EBITDA between $119 mln and $153 mln

Result Drivers

HEALTHCARE COSTS - Elevated healthcare costs, including inpatient, outpatient, and pharmacy trends, negatively impacted gross profit

UHC CONTRACT EXTENSION - Multi-year contract extension with UnitedHealthcare expected to provide significant cost reductions and strategic alignment

HRScale ROLLOUT - Launch of HRScale, a joint solution with Workday, expected to drive future growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$1.62 bln
$1.63 bln (5 Analysts)
Q3 Adjusted EPS
Miss
-$0.20
$0.22 (5 Analysts)
Q3 Net Income
-$20 mln
Q3 Gross Profit
$195 mln


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 $56.00, about 21.2% above its October 31 closing price of $44.12

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw7H4xXNa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)