HR services provider Insperity reports Q2 net loss of $5 mln
Overview
Insperity Q2 revenue rises 3% yr/yr but missed analyst expectations
Adjusted EPS for Q2 misses consensus, reflecting higher benefits costs
Co reports Q2 net loss of $5 mln, adjusted EBITDA misses estimates
Outlook
Insperity sees Q3 adjusted EPS between $0.06 and $0.49
Company expects full-year adjusted EPS of $1.81 to $2.51
Insperity forecasts Q3 adjusted EBITDA of $24 mln to $44 mln
Company projects full-year adjusted EBITDA of $170 mln to $205 mln
Result Drivers
HIGHER HEALTHCARE COSTS - Gross profit decline attributed to elevated healthcare costs, including pharmacy trends and large claim activity
REVENUE GROWTH - 3% revenue increase driven by higher pricing and slight increase in average paid WSEEs
BENEFIT PLAN CHANGES - Co implementing benefit plan design changes to address elevated benefits cost trend, per CFO James D. Allison
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $1.66 bln | $1.66 bln (5 Analysts) |
Q2 Adjusted EPS | Miss | $0.26 | $0.43 (5 Analysts) |
Q2 Net Income | -$5 mln | ||
Q2 Adjusted EBITDA | Miss | $32 mln | $39.80 mln (5 Analysts) |
Q2 Operating income | Miss | -$7 mln | $16.20 mln (3 Analysts) |
Q2 Gross Profit | $223 mln |
Press Release:
