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Insperity (NSP) to Report Q4 Earnings: What's in the Cards?

Insperity, Inc.NSP is scheduled to report fourth-quarter 2018 earnings on Feb 11, before market opens.

Notably, shares of the company have surged 84.5% in the past year, against the industry 's decline of 1.6%.

Let's see how things shape up for this announcement.

Revenues to Improve Year Over Year

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $964 million, reflecting a 16.7% improvement from the year-ago quarter's figure. The upside is likely to be driven by strong growth in average number of worksite employees paid per month.

Worksite employee growth is likely to benefit from growth in worksite employees paid from new sales in client segment, high client retention rates and rise in net hiring of worksite employees by the company's client base. The consensus mark for the metric in the fourth quarter is pegged at $0.22 million, indicating year-over-year rise of 15.8%.

In third-quarter 2018, revenues of $925.1 million increased 16.3% on a year-over-year basis on the back of 15.2% increase in average number of worksite employees paid per month.

Earnings Likely to Improve on Tax Benefits

The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at 65 cents per share, indicating year-over-year growth of 18.2%. Worksite employee growth, lower tax rate and efficient cost management will benefit Insperity's earnings. However, such benefits can be partially offset by increased investments in technology and product as well as service offerings.

In third-quarter 2018, adjusted earnings of 96 cents surged 68.4% on a year-over-year basis.

Insperity, Inc. Price and EPS Surprise

Insperity, Inc. Price and EPS Surprise | Insperity, Inc. Quote

Our Model Doesn't Suggest a Beat

Please note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP .

Insperity has a Zacks Rank #2 and an Earnings ESP of 0.00%, a combination that makes surprise prediction difficult.

Stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) are best avoided, especially if the companies are witnessing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Stocks to Consider

Here are a few stocks from the Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat estimates in fourth-quarter 2018:

First Data Corporation FDC has an Earnings ESP of +3.17% and a Zacks Rank #2. The company is scheduled to release results on Feb 6. You can see the complete list of today's Zacks #1 Rank stocks here .

IQVIA Holdings Inc. IQV has an Earnings ESP of +0.37% and a Zacks Rank #3. The company is slated to report results on Feb 14.

Fiserv, Inc. FISV has an Earnings ESP of +0.03% and a Zacks Rank #3. The company is scheduled to release results on Feb 7.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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