The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Insperity met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share improved significantly.
Gross margins dropped, operating margins grew, net margins expanded.
Insperity booked revenue of $495.1 million. The seven analysts polled by S&P Capital IQ foresaw revenue of $500.6 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $435.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.42. The seven earnings estimates compiled by S&P Capital IQ predicted $0.36 per share. GAAP EPS of $0.42 for Q4 were 40% higher than the prior-year quarter's $0.30 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.2%, 40 basis points worse than the prior-year quarter. Operating margin was 3.4%, 50 basis points better than the prior-year quarter. Net margin was 2.2%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $595.6 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $2.22 billion. The average EPS estimate is $1.68.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 243 members out of 260 rating the stock outperform, and 17 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Insperity a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Insperity is outperform, with an average price target of $35.17.
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