TriNet Group (TNET) Tops Q4 EPS by 19c, Revenues Beat; Offers 1Q EPS Above Consensus, FY21 EPS Outlook

TriNet Group (NYSE: TNET) reported Q4 EPS of $0.44, $0.19 better than the analyst estimate of $0.25. Revenue for the quarter came in at $221 million versus the consensus estimate of $195.57 million.

Fourth quarter highlights include:

• Total revenues increased 4% to $1.1 billion and Net Service Revenues decreased 2% to $221 million, as compared to the same period last year.
• Net income was $22 million, or $0.32 per diluted share, compared to net income of $48 million, or $0.68 per diluted share, in the same period last year.
• Adjusted Net Income was $30 million, or $0.44 per diluted share, compared to Adjusted Net Income of $59 million, or $0.84 per diluted share, in the same period last year.
• Adjusted EBITDA was $56 million, representing an Adjusted EBITDA Margin of 25%.
• Average Worksite Employees (WSEs) decreased 3% as compared to the same period last year, to approximately 327,000.
• Total WSEs decreased 2% compared to the same period last year, to approximately 332,000.

"I was pleased with the strength of our Fourth Quarter financial and operating performance," said Burton M. Goldfield, TriNet's President and CEO. "Our Fourth Quarter performance demonstrated the strength of our business model as well as the durability and vitality of our customers. Throughout 2020, the TriNet team and our customers worked together to navigate the unprecedented challenges presented by the COVID-19 pandemic. We provided support for our customers through the dedication of our service team and through innovative offerings such as our Recovery Credit Program. As we look to 2021 and as vaccines become widely disseminated, we are hopeful for a safe resolution to the COVID-19 pandemic, and we are prepared for a normalization of the business environment. TriNet is ready to grow with our customers."

GUIDANCE:

TriNet Group sees Q1 2021 EPS of $1.16-$1.39, versus the consensus of $0.91.

TriNet Group sees FY2021 EPS of $3.35-$3.90, versus the consensus of $3.71.

For earnings history and earnings-related data on TriNet Group (TNET) click here.

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