Nyse Order Imbalance 23126.0 Shares On Sell Side

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Insperity and its peers.

The Professional Staffing & HR Solutions subsector within Business Services is set to benefit from evolving workforce trends, including the rise of remote work and the gig economy. With companies casting a wider net to find talent due to remote work, the expertise of staffing and recruiting companies is even more valuable. For those who invest wisely, the use of predictive AI in recruitment and screening as well as automation in HR workflows can enhance efficiency and scalability. On the other hand, digitization means that talent discovery is less of a manual process, opening the door for tech-first platforms. Additionally, regulatory scrutiny around data privacy in HR is evolving and may require companies in this sector to change their go-to-market strategies over time.

The 7 professional staffing & hr solutions stocks we track reported a mixed Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.5% since the latest earnings results.

Weakest Q3: Insperity

Pioneering the professional employer organization (PEO) industry it helped establish, Insperity provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.

Insperity reported revenues of $1.62 billion, up 4% year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with a significant miss of analysts’ full-year EPS guidance estimates.

“We are actively working to position Insperity for sustainable profitability at normal historical levels as we execute on our plan in response to unexpected, elevated healthcare cost trend. We are simultaneously taking assertive actions, including through the new contract with UnitedHealthcare, and will continue to focus on attracting and retaining the right clients at the right price and prudently managing expenses,” said Paul J. Sarvadi, Insperity chairman and chief executive officer.

Unsurprisingly, the stock is down 21.7% since reporting and currently trades at $35.32.

Read our full report on Insperity here, it’s free for active Edge members.

Best Q3: Kforce

With nearly 60 years of matching skilled professionals with the right opportunities, Kforce is a professional staffing company that specializes in placing technology and finance experts with businesses on both temporary and permanent bases.

Kforce reported revenues of $332.6 million, down 5.9% year on year, outperforming analysts’ expectations by 1.5%. The business had an exceptional quarter with revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 22.5% since reporting. It currently trades at $30.06.

Is now the time to buy Kforce? Access our full analysis of the earnings results here, it’s free for active Edge members.

Alight

Born from a corporate spinoff in 2017 to focus on employee experience technology, Alight provides human capital management solutions that help companies administer employee benefits, payroll, and workforce management systems.

Alight reported revenues of $533 million, down 4% year on year, falling short of analysts’ expectations by 0.7%. It was a disappointing quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and EPS in line with analysts’ estimates.

Alight delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 13.9% since the results and currently trades at $2.36.

Read our full analysis of Alight’s results here.

Robert Half

With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.

Robert Half reported revenues of $1.35 billion, down 7.5% year on year. This number met analysts’ expectations. More broadly, it was a mixed quarter as it also produced EPS in line with analysts’ estimates but revenue in line with analysts’ estimates.

Robert Half had the slowest revenue growth among its peers. The stock is down 7.4% since reporting and currently trades at $27.45.

Read our full, actionable report on Robert Half here, it’s free for active Edge members.

First Advantage

Processing approximately 100 million background checks annually across more than 200 countries and territories, First Advantage provides employment background screening, identity verification, and compliance solutions to help companies manage hiring risks.

First Advantage reported revenues of $409.2 million, up 105% year on year. This print topped analysts’ expectations by 1.6%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates.

First Advantage scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 8% since reporting and currently trades at $13.97.

Read our full, actionable report on First Advantage here, it’s free for active Edge members.

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official hinted at a potential interest rate cut in December. John Williams, president of the Federal Reserve Bank of New York, signaled he was open to lowering the fed funds rate—the key interest rate that banks charge each other for overnight loans—to support the job market. Speaking at an event, Williams stated that he sees “room for a further adjustment” for interest rates, which immediately shifted market expectations. Following his remarks, the perceived likelihood of an interest rate cut at the Federal Reserve's December meeting flipped from unlikely to more likely than not. The prospect of lower borrowing costs sent a wave of optimism through the markets, leading to a rally in major indices like the S&P 500, Dow Jones Industrial Average, and the Nasdaq Composite.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• IT Services & Consulting company DXC jumped 4.5%. Is now the time to buy DXC? Access our full analysis report here, it’s free for active Edge members.
• Professional Staffing & HR Solutions company Kforce jumped 5.4%. Is now the time to buy Kforce? Access our full analysis report here, it’s free for active Edge members.
• Professional Staffing & HR Solutions company Insperity jumped 4.5%. Is now the time to buy Insperity? Access our full analysis report here, it’s free for active Edge members.
• Office & Commercial Furniture company Interface jumped 5%. Is now the time to buy Interface? Access our full analysis report here, it’s free for active Edge members.
• Specialized Technology company Cognex jumped 5.3%. Is now the time to buy Cognex? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Kforce (KFRC)

Kforce’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 17 days ago when the stock gained 30.9% on the news that the company reported third-quarter earnings that surpassed analyst expectations and provided an optimistic forecast for the fourth quarter. Kforce announced revenue of $332.6 million and earnings of $0.63 per share. Although sales decreased by 5.9% year on year, both figures comfortably beat market forecasts. Adding to the positive sentiment, the company's revenue guidance for the upcoming fourth quarter was approximately $330 million, about 3% higher than analysts had projected. This better-than-expected performance and strong outlook suggested to investors that demand might be stabilizing, despite the recent period of decline.

Kforce is down 46.1% since the beginning of the year, and at $29.85 per share, it is trading 51.6% below its 52-week high of $61.65 from December 2024. Investors who bought $1,000 worth of Kforce’s shares 5 years ago would now be looking at an investment worth $730.01.

Kforce’s third quarter results were shaped by a growing mix of consulting-led solutions and rising demand for AI-related talent, leading to a positive market reaction. Management pointed to a consistent expansion in the number of consultants on assignment, with CEO Joseph Liberatore emphasizing, “Our internal KPIs improved throughout the third quarter, and this translates to an increase in consultants on assignment.” The company’s Finance and Accounting business also showed sequential growth for the first time in years, supported by targeted investments and stabilization efforts. Despite persistent macroeconomic uncertainty and a weak labor market, Kforce saw improvements across both its Technology and Finance and Accounting segments, with broad-based gains in client engagements and talent models.

Is now the time to buy KFRC? Find out in our full research report (it’s free for active Edge members).

Kforce (KFRC) Q3 CY2025 Highlights:

• Revenue: $332.6 million vs analyst estimates of $327.6 million (5.9% year-on-year decline, 1.5% beat)
• Adjusted EPS: $0.63 vs analyst estimates of $0.56 (11.6% beat)
• Adjusted EBITDA: $19.41 million vs analyst estimates of $18.67 million (5.8% margin, 3.9% beat)
• Revenue Guidance for Q4 CY2025 is $330 million at the midpoint, above analyst estimates of $320.3 million
• Operating Margin: 4.5%, in line with the same quarter last year
• Market Capitalization: $519.6 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Kforce’s Q3 Earnings Call

• Trevor Romeo (William Blair) asked about the sustainability of the 4% sequential increase in consultants on assignment. COO David Kelly said this growth continued into October but noted pre-pandemic periods sometimes saw higher rates, making comparisons difficult.
• Trevor Romeo (William Blair) inquired about the factors behind margin improvement, especially the impact of consulting mix. CFO Jeffrey Hackman explained that consulting-led projects carry 400 to 600 basis points higher margins, and higher-value skill areas have provided pricing durability.
• Trevor Romeo (William Blair) sought clarification on exposure to possible H-1B visa fee increases. COO David Kelly said Kforce sponsors virtually no new H-1B visas, so there is minimal near-term impact, and strong compliance gives Kforce a competitive advantage.
• Alexander Sinatra (Robert Baird) questioned the scale and outlook for AI-related projects. CEO Joseph Liberatore described broad client focus on foundational AI readiness, emphasizing data, cloud, and security, while noting that operational AI use cases are most prevalent.
• Karandeep Singhania (UBS) asked about industry-specific stabilization. CFO Jeffrey Hackman said growth was broad-based across industries and geography, with no single sector driving results.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory analyst team will be monitoring (1) the pace at which consulting-led and AI readiness engagements convert to sustained revenue growth; (2) margin trends as the business mix continues to shift toward higher-value services; and (3) early signs of broader labor market stabilization or incremental demand in Finance and Accounting. Successful execution on strategic investments in sales enablement and productivity tools will be an additional indicator of progress.

Kforce currently trades at $30.41, up from $24.54 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

Our Favorite Stocks Right Now

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