By By Ben Glickman
Shares of Insperity took a hit on Tuesday after the company revised its full-year earnings forecast following disappointing second-quarter results.
The stock dropped 16% to $98.92 during morning trading, and has declined 13% year-to-date.
Houston-based human resources solutions provider, Insperity, reported a second-quarter profit of $12.9 million, or 33 cents per share, compared to $33.6 million, or 87 cents per share, in the same period last year. Analysts surveyed by FactSet had estimated earnings per share of 93 cents.
While the company’s revenue increased by 11% to $1.59 billion, surpassing the expected $1.56 billion projected by analysts, according to FactSet, Insperity attributed its decline in profit to significantly higher benefit costs, mainly due to a spike in healthcare claims.
As a result, Insperity has lowered its full-year adjusted earnings per share guidance to $4.35 to $5.32, down from the prior range of $5.62 to $6.39. Analysts, on the other hand, expect full-year adjusted earnings per share of $5.97.
Furthermore, the company has also revised its guidance for the average number of worksite employees paid. Insperity now anticipates a range of 314,200 to 315,600 employees, as opposed to the previous forecast of 315,600 to 321,600.
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