Insperity (NYSE: NSP) reported Q3 EPS of $0.91, $0.46 better than the analyst estimate of $0.45. Revenue for the quarter came in at $1.01 billion versus the consensus estimate of $980.09 million.

“These excellent results reflect outperformance in worksite employee growth and pricing relative to our expectations in the midst of an uncertain business environment. These developments, together with favorable results in our direct cost programs, more than offset the impact of layoffs within our client base brought about by the pandemic,” said Paul J. Sarvadi, Insperity chief executive officer and chairman. “We expect the strength of our business model, the dedication of our staff, and the resiliency of our client base to be important factors as we look ahead with confidence into 2021.”

The average number of worksite employees (“WSEEs”) paid per month in Q3 2020 increased 1.7% sequentially over the Q2 period to 231,750 WSEEs, which was above the high end of our expected range. A continued improvement over the course of the pandemic from the low point experienced in May 2020 was driven by (1) WSEEs hired or returning to work outpacing layoffs, (2) client retention for both Q2 and Q3 remaining at our historical level of 99% and (3) the addition of WSEEs from solid new client sales throughout the pandemic.

“We are pleased with our recent sequential growth and expect paid worksite employees to return to near pre-pandemic levels by the end of the year,” said Douglas S. Sharp, Insperity senior vice president of finance, chief financial officer and treasurer. “Additionally, strong execution in pricing, effective management of our direct cost programs and operating expenses, and the dynamics of the pandemic on our business has driven our recent substantial outperformance.”

GUIDANCE:

Insperity sees Q4 2020 EPS of $0.20-$0.38, versus the consensus of $0.21.

Insperity sees FY2020 EPS of $4.35-$4.53, versus the consensus of $3.90.

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