Insperity (NYSE: NSP) reported Q1 EPS of $1.98, $0.10 better than the analyst estimate of $1.88. Revenue for the quarter came in at $1.15 billion versus the consensus estimate of $1.16 billion.

“Our record first quarter results reflect the strength of our business model and continued excellent execution of our strategic plan,” said Paul J. Sarvadi, Insperity chairman and chief executive officer. “These results further demonstrate the sustainability of our rapid growth and profitability experienced over the last several years into 2019.”

Revenues increased 14% over the first quarter of 2018 to $1,153.0 million on a 15% increase in the average number of worksite employees (“WSEEs”) paid per month. The continued double-digit worksite employee growth was the result of the enrollment of new clients coming off a successful 2018 fall sales campaign and a high level of client retention during our heavy first quarter client renewal period. Additionally, we experienced net hiring in our client base during the first quarter of 2019, although at lower levels than experienced during the first quarter of 2018.

Gross profit increased 14% over the first quarter of 2018 to $226.7 million, and included favorable workers’ compensation and benefit cost trends and stronger pricing. Operating expenses increased 5% over the first quarter of 2018, while adjusted operating expenses increased 12% to $141.3 million, and included continued investments in our growth, technology and product and service offerings.

“Worksite employee growth in the mid-teens, combined with effective management of pricing, direct cost programs and operating costs, produced adjusted EBITDA and cash flow at record levels,” said Douglas S. Sharp, senior vice president of finance, chief financial officer and treasurer. “We ended the first quarter with $141 million of adjusted cash, up from $129 million at December 31, 2018, after the repurchase of 230,000 shares at a cost of $29 million and the payment of our regular cash dividend totaling $12 million.”

GUIDANCE:

Insperity sees Q2 2019 EPS of $0.81-$0.86, versus the consensus of $0.82.

Insperity sees FY2019 EPS of $4.55-$4.80, versus the consensus of $4.59.

For earnings history and earnings-related data on Insperity (NSP) click here.