HOUSTON - Insperity, Inc. (NYSE: NYSE:NSP), a provider of human resources and business performance solutions, has announced the upcoming retirement of its long-standing Chief Financial Officer (CFO) Douglas S. Sharp (OTC:SHCAY) on November 15, 2024. Sharp has been with the company for 21 years, contributing to its growth and profitability.
The company also revealed that James D. Allison will succeed Sharp as CFO on the same date. Allison, currently the executive vice president of comprehensive benefit solutions and chief profitability officer at Insperity, joined the company in 1997 and has since held various roles within the finance department. His promotion to Senior Vice President of Pricing and Cost Analysis came in 2011, and he took on additional responsibilities for gross profit drivers in 2018.
Insperity's Chairman and CEO, Paul J. Sarvadi, expressed gratitude for Sharp's dedication and confidence in Allison's capability to lead the company's financial operations forward. Sharp himself praised Allison's deep understanding of the company's business and industry, highlighting his comprehensive financial and leadership experience.
In a related move, Sean P. Duffy will be promoted to senior vice president of finance and accounting, overseeing several key financial functions. Duffy joined Insperity in 2002 and has held positions of increasing responsibility, most recently serving as vice president of finance and controller since 2011.
Insperity, founded in 1986, provides a wide range of HR solutions aimed at helping businesses grow. The company reported revenues of $6.5 billion in 2023 and operates more than 90 offices across the United States.
This leadership transition is part of Insperity's strategic planning and is expected to maintain the continuity of the company's financial and operational management. The information regarding these executive changes is based on a press release statement from Insperity, Inc.
In other recent news, Insperity, Inc. reported robust Q2 2024 financial results, with noteworthy growth in earnings and client retention rates. The company's adjusted earnings per share (EPS) increased by 34% to $0.86, and adjusted EBITDA grew by 29% to $66 million. These positive outcomes were primarily driven by lower-than-expected benefit costs, effective pricing strategies, and reduced operating expenses. Despite a slight forecasted decline in average paid worksite employees, Insperity remains optimistic, especially regarding its strategic partnership with Workday (NASDAQ:WDAY), which is expected to contribute positively to long-term growth.
Client retention remained high at 99%, and the average number of paid worksite employees rose to approximately 307,000. For the full year, the company projects an adjusted EPS between $3.33 and $3.88 and an adjusted EBITDA in the range of $261 million to $290 million. Insperity also discussed the positive impact of lower-than-expected claims in Q2, leading to a reserve adjustment.
Although net growth in the client base was lower than expected, the company's strong pricing and lower operating expenses contributed to earnings outperformance. The partnership with Workday is seen as a significant upside potential not yet reflected in the year's results. Insperity has expressed excitement about this partnership and other initiatives, which are expected to drive future growth.
InvestingPro Insights
As Insperity, Inc. (NYSE: NSP) prepares for a significant transition in its financial leadership, investors and stakeholders may find valuable insights through InvestingPro metrics and tips. Currently, Insperity holds a market capitalization of approximately $3.49 billion and is trading at a Price/Earnings (P/E) ratio of 21.78, indicating investors' valuation of its earnings. The company's Price/Book ratio, a measure of market valuation, stands at a high 24.63 as of the last twelve months up to Q2 2024, reflecting a premium compared to the industry average.
Insperity has shown a consistent ability to maintain profitability, with a positive Return on Assets (ROA) of 8.15% over the same period. This financial health is further underscored by the company's capability to hold more cash than debt on its balance sheet, an InvestingPro Tip that suggests a strong liquidity position. Additionally, Insperity has a proven track record of rewarding shareholders, maintaining dividend payments for 20 consecutive years, with a current dividend yield of 2.56% and a dividend growth of 5.26% over the last twelve months.
However, it's worth noting that four analysts have revised their earnings estimates downwards for the upcoming period, a potential signal for investors to monitor future profitability closely. For those interested in deeper analysis, there are additional InvestingPro Tips available, providing a comprehensive view of Insperity's financial landscape and investment potential. To explore these insights further, visit InvestingPro's dedicated page for Insperity at https://www.investing.com/pro/NSP.
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