Human resources services provider Administaff Inc.(ASF) Monday reported a sharp decline in profit for the third quarter, as revenues declined more than 7% due to lower average number of worksite employees paid per month. However, on a per-share basis, earnings topped analysts' estimate by a penny.
Net income for the quarter plummeted to $5.83 million or $0.23 per share from $11.93 million or $0.46 per share in the previous year. On an average, seven analysts polled by Thomson Reuters expected earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude special items.
Quarterly revenues dropped 7.3% to $390.91 million from $421.91 million in the year-earlier quarter, due to a 9.9% decrease in the average number of worksite employees paid per month, partially offset by a 2.8% increase in revenues per worksite employee per month. Analysts estimated revenues of $396.61 million.
Gross profit for the quarter decreased 16.8% to $71.1 million. The average gross profit per worksite employee per month decreased 7.9% to $220 from $239 last year, impacted negatively by higher benefits costs due to higher utilization of health benefits by worksite employees, including large claim activity and increased COBRA participation.
For the nine-month period, net income declined 46.3% to $19.38 million or $0.77 per share from $36.07 million or $1.40 per share in the prior year.
Year-to-date revenues were $1.26 billion, down 3.2% from $1.30 billion in the comparable period, as average number of worksite employees paid per month dropped 6.1%, partially offset by a 3.1% increase in revenues per worksite employee per month.
ASF closed Friday's regular trading at $24.82 per share on the New York Stock Exchange.
For comments and feedback: editorial@rttnews.com