HR outsourcing provider Insperity (NYSE:NSP) will be reporting earnings tomorrow before market hours. Here’s what to expect.
Insperity beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $1.61 billion, up 2.1% year on year. It was a mixed quarter for the company, with EPS guidance for next quarter missing analysts' estimates.
This quarter, analysts are expecting Insperity’s revenue to grow 3.8% year on year to $1.87 billion, improving from the 1.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.02 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Insperity has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Insperity’s peers in the professional services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. ManpowerGroup’s revenues decreased 7.1% year on year, beating analysts’ expectations by 2.9%, and Robert Half reported a revenue decline of 8.4%, falling short of estimates by 4.3%. ManpowerGroup traded down 19.2% following the results while Robert Half was also down 3.1%.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the professional services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.1% on average over the last month. Insperity is down 11.5% during the same time and is heading into earnings with an average analyst price target of $89.25 (compared to the current share price of $79).
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