Why Is Insperity (NSP) Down 6.5% Since Last Earnings Report?

A month has gone by since the last earnings report for Insperity, Inc. (NSP). Shares have lost about 6.5% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Insperity due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.Insperity Q3 Earnings Miss EstimatesInsperity reported lower-than-expected third-quarter 2025 results.NSP registered an adjusted loss of 20 cents per share compared with the consensus mark for earnings of 22 cents per share. It compares with the year-ago earnings of 39 cents per share. Revenues of $1.6 billion missed the Zacks Consensus Estimate by a slight margin but increased 4% from the year-ago quarter. 16.00 Normal 0 false false false EN-IN ZH-CN HI /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-priority:99;mso-style-parent:"";mso-padding-alt:0cm 5.4pt 0cm 5.4pt;mso-para-margin-top:0cm;mso-para-margin-right:0cm;mso-para-margin-bottom:8.0pt;mso-para-margin-left:0cm;line-height:107%;mso-pagination:widow-orphan;font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:"Calibri",sans-serif;mso-ascii-font-family:Calibri;mso-ascii-theme-font:minor-latin;mso-hansi-font-family:Calibri;mso-hansi-theme-font:minor-latin;mso-bidi-font-family:Mangal;mso-bidi-theme-font:minor-bidi;mso-font-kerning:1.0pt;mso-ligatures:standardcontextual;mso-fareast-language:EN-US;mso-bidi-language:HI;} Normal 0 false false false EN-IN X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-priority:99;mso-style-parent:"";mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-para-margin:0in;line-height:115%;mso-pagination:widow-orphan;font-size:11.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN;mso-fareast-language:EN-IN;}The average number of worksite employees paid per month increased 1% year over year to 312,842. Revenues per worksite employee (WSEE) per month increased 3% from the year-ago quarter to $1,729.Insperity's Q3 Operating ResultsGross profit declined 15% from the year-ago quarter to $195 million. The gross margin was 12%, down 140 basis points from the third quarter of 2024. Operating expenses declined 4% year over year to $220 million. Operating expenses per WSEE per month fell 4% on a year-over-year basis to $246.NSP reported an operating loss of $25 million against the year-ago quarter’s operating income of $1 million. The company witnessed an operating loss per WSEE per month of $27 compared with the year-ago quarter’s $1. Adjusted EBITDA for the reported quarter is $10 million, decreasing 87.5% on a year-over-year basis.Balance Sheet & Cash Flow of NSP Normal 0 false false false EN-IN X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-priority:99;mso-style-parent:"";mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-para-margin:0in;line-height:115%;mso-pagination:widow-orphan;font-size:11.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN;mso-fareast-language:EN-IN;}Insperity exited third-quarter 2025 with cash and cash equivalents of $422 million compared with $441 million in the preceding quarter. The long-term debt was $369 million, flat sequentially.In the reported quarter, NSP distributed $11.1 million as cash dividends. The capital expenditure totaled $5.6 million.NSP's Q4 & 2025 Guidance Normal 0 false false false EN-IN X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-priority:99;mso-style-parent:"";mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-para-margin:0in;line-height:115%;mso-pagination:widow-orphan;font-size:11.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN;mso-fareast-language:EN-IN;}For the fourth quarter of 2025, NSP’s guidance for loss per share is kept at 79-16 cents. Insperity’s view for adjusted EBITDA is kept at -$29-$9 million.For 2025, the company lowered the adjusted earnings per share (EPS) guidance to $84 cents-$1.47 from the preceding quarter’s view of $1.81-$2.51. Adjusted EBITDA is reduced to $119-$153 million compared with $170-$205 million provided in the preceding quarter.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.The consensus estimate has shifted -241.05% due to these changes.VGM ScoresAt this time, Insperity has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Insperity has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.Performance of an Industry PlayerInsperity belongs to the Zacks Staffing Firms industry. Another stock from the same industry, Robert Half (RHI), has gained 7.5% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.Robert Half reported revenues of $1.35 billion in the last reported quarter, representing a year-over-year change of -7.5%. EPS of $0.43 for the same period compares with $0.64 a year ago.For the current quarter, Robert Half is expected to post earnings of $0.30 per share, indicating a change of -43.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.6% over the last 30 days.Robert Half has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Insperity, Inc. (NSP): Free Stock Analysis Report Robert Half Inc. (RHI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks