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Insperity Inc. (NYSE: NSP) reported first-quarter revenue rose 4.1 percent year over year to $637.0 million. The Houston-based professional employer organization attributed the rise to a 2.3 percent increase in the average number of worksite employees paid per month and a 1.7 percent increase in revenues per worksite employee per month.
“We exceeded our first quarter earnings expectations during a weak economy, soft labor market and repeated delays and changes to healthcare reform,” said Chairman and CEO Paul Sarvadi. “Our momentum for both core and mid-market sales, coupled with our plan to align operating expenses, establishes a solid foundation for growth for the balance of the year and operating leverage into 2015.”
Despite the revenue increase, first-quarter net income and gross margin fell.
Net income fell 27.4 percent in the first quarter to $9.6 million from $13.2 million in the same quarter last year, and gross margin fell to 16.7 percent from 17.7 percent in the year-ago quarter.
Earlier, an Insperity shareholder, Stadium Capital Management, called for C-suite to look into the possibility of selling the company and a change to the makeup of the board.
Shares in Insperity were up 3.38 percent in early afternoon trading. The company has a market cap of approximately $829.14 million, according to Google.