What happened?
Shares of HR outsourcing provider Insperity (NYSE: NSP) fell 8.7% in the afternoon session after the company reported third-quarter results and issued fourth-quarter adjusted earnings per share guidance below analyst estimates. According to a company press release, Insperity reported third-quarter revenue of $1.7 billion, up 2%, while average paid worksite employees fell 2% to 307,265. The net loss improved 95% to $1 million. Diluted earnings per share was a loss of 2 cents, and adjusted earnings per share was 22 cents, in line with analyst estimates. Adjusted EBITDA was $31 million, above the estimate of $30.1 million. The company guided fourth-quarter adjusted earnings per share to $0.07 to $0.42, below analyst estimates, and full-year adjusted earnings per share to $1.93 to $2.28. Full-year adjusted EBITDA guidance of $194 million to $214 million has a midpoint of $204 million, above the estimate of $201 million.
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What is the market telling us
Insperity’s shares are extremely volatile and have had 41 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock dropped 16.5% on the news that the company reported underwhelming first-quarter results as it provided a weak financial forecast for the upcoming quarter and lowered its full-year guidance. Although first-quarter adjusted earnings per share of $1.31 topped analyst estimates, the details of the report and the forward-looking statements concerned investors. The market's negative reaction was primarily tied to the company's outlook. For the second quarter, Insperity forecast adjusted earnings between $0.02 and $0.50 per share, significantly below the analyst consensus of $0.47. Furthermore, the company reduced its full-year adjusted earnings guidance to a midpoint of $2.10 per share, also falling short of Wall Street's estimates.
Insperity is up 21.7% since the beginning of the year, but at $47.01 per share, it is still trading 13.7% below its 52-week high of $54.44 from October 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Insperity’s shares 5 years ago would now be looking at only $376.04.
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