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NSP: Future Earnings Are Expected To Recover After Near-Term Losses

NSP: Future Brand Partnership Will Drive Greater Awareness And Engagement

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NSP
AnalystConsensusTarget
Not Invested
Published 04 Sep 2024

Update shared on 17 Dec 2025

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Narrative Update on Insperity

Analysts have reiterated their price target at approximately $45.00 per share, with only marginal tweaks to the discount rate and long-term valuation inputs, reflecting a largely unchanged outlook on Insperity's revenue growth, profitability, and forward earnings multiple.

What's in the News

  • Insperity updated its 2025 earnings outlook, forecasting a fourth quarter net loss between $40 million and $16 million, or diluted loss per share of $1.07 to $0.44, and highlighted anticipated earnings pressure late in the year (company guidance).
  • For full year 2025, the company now projects results ranging from a net loss of $15 million to net income of $9 million, with diluted loss per share of $0.38 to earnings per share of $0.25, indicating a narrow path to profitability (company guidance).
  • The company reported that between July 1, 2025 and September 30, 2025, it repurchased no additional shares under its longstanding buyback authorization, which suggests a pause in capital returned via repurchases during the quarter (buyback tranche update).
  • Cumulatively, Insperity has completed repurchases totaling 40,292,236 shares for approximately $1.10 billion under the buyback program launched in March 1999, reflecting a long history of shareholder capital returns (buyback tranche update).

Valuation Changes

  • Fair Value: Unchanged at approximately $45.00 per share, indicating a stable central valuation view.
  • Discount Rate: Fell slightly from about 7.76 percent to roughly 7.70 percent, modestly lowering the hurdle rate applied to future cash flows.
  • Revenue Growth: Effectively unchanged at about 6.95 percent, signaling a steady outlook for top line expansion.
  • Net Profit Margin: Essentially unchanged at approximately 1.70 percent, reflecting a stable long term profitability assumption.
  • Future P/E: Edged down slightly from roughly 15.65x to 15.63x, implying a marginally lower valuation multiple on projected earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.