The investors in Insperity, Inc.'s (NYSE:NSP) will be rubbing their hands together with glee today, after the share price leapt 21% to US$86.27 in the week following its yearly results. Insperity reported in line with analyst predictions, delivering revenues of US$6.6b and statutory earnings per share of US$2.42, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Insperity after the latest results.

View our latest analysis for Insperity

Taking into account the latest results, the current consensus from Insperity's five analysts is for revenues of US$6.90b in 2025. This would reflect a modest 4.9% increase on its revenue over the past 12 months. Statutory earnings per share are expected to decrease 6.9% to US$2.28 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$6.91b and earnings per share (EPS) of US$2.51 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$90.75, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Insperity analyst has a price target of US$105 per share, while the most pessimistic values it at US$82.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Insperity's revenue growth is expected to slow, with the forecast 4.9% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.6% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Insperity.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$90.75, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Insperity. Long-term earnings power is much more important than next year's profits. We have forecasts for Insperity going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Insperity that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.