Q1 Earnings Highlights: Insperity (NYSE:NSP) Vs The Rest Of The Professional Staffing & HR Solutions Stocks

NSP Cover Image

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Insperity (NYSE: NSP) and the rest of the professional staffing & hr solutions stocks fared in Q1.

The Professional Staffing & HR Solutions subsector within Business Services is set to benefit from evolving workforce trends, including the rise of remote work and the gig economy. With companies casting a wider net to find talent due to remote work, the expertise of staffing and recruiting companies is even more valuable. For those who invest wisely, the use of predictive AI in recruitment and screening as well as automation in HR workflows can enhance efficiency and scalability. On the other hand, digitization means that talent discovery is less of a manual process, opening the door for tech-first platforms. Additionally, regulatory scrutiny around data privacy in HR is evolving and may require companies in this sector to change their go-to-market strategies over time.

The 7 professional staffing & hr solutions stocks we track reported a slower Q1. As a group, revenues beat analysts’ consensus estimates by 0.5% while next quarter’s revenue guidance was in line.

While some professional staffing & hr solutions stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results.

Insperity (NYSE: NSP)

Pioneering the professional employer organization (PEO) industry it helped establish, Insperity (NYSE: NSP) provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.

Insperity reported revenues of $1.86 billion, up 3.4% year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.

“Our first quarter financial results, reflecting macro-economic turbulence and healthcare cost volatility, are in stark contrast with the solid execution of our game plan for building the foundation for future growth acceleration,” said Paul J. Sarvadi, Insperity chairman and chief executive officer.

Insperity Total Revenue

The stock is down 21.8% since reporting and currently trades at $61.37.

Read our full report on Insperity here, it’s free.

Best Q1: First Advantage (NASDAQ: FA)

Processing approximately 100 million background checks annually across more than 200 countries and territories, First Advantage (NASDAQ: FA) provides employment background screening, identity verification, and compliance solutions to help companies manage hiring risks.

First Advantage reported revenues of $354.6 million, up 109% year on year, outperforming analysts’ expectations by 2.9%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.

First Advantage Total Revenue

First Advantage delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 21.5% since reporting. It currently trades at $18.20.

Is now the time to buy First Advantage? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Robert Half (NYSE: RHI)

With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half (NYSE: RHI) provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.

Robert Half reported revenues of $1.35 billion, down 8.4% year on year, falling short of analysts’ expectations by 4.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

Robert Half delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 5.8% since the results and currently trades at $43.79.

Read our full analysis of Robert Half’s results here.

Kforce (NYSE: KFRC)

With nearly 60 years of matching skilled professionals with the right opportunities, Kforce (NYSE: KFRC) is a professional staffing company that specializes in placing technology and finance experts with businesses on both temporary and permanent bases.

Kforce reported revenues of $330 million, down 6.2% year on year. This number missed analysts’ expectations by 1%. Overall, it was a softer quarter as it also recorded a miss of analysts’ EPS estimates.

The stock is down 3.2% since reporting and currently trades at $41.27.

Read our full, actionable report on Kforce here, it’s free.

ManpowerGroup (NYSE: MAN)

Founded during the post-World War II economic boom when businesses needed temporary workers, ManpowerGroup (NYSE: MAN) connects millions of people to employment opportunities through its global network of staffing, recruitment, and workforce management services.

ManpowerGroup reported revenues of $4.09 billion, down 7.1% year on year. This result surpassed analysts’ expectations by 2.9%. Taking a step back, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates.

The stock is down 13.3% since reporting and currently trades at $42.87.

Read our full, actionable report on ManpowerGroup here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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