Administaff Income Falls 38 Percent In 1st Quarter

HOUSTON (AP) — Human resources service provider Administaff Inc. on Monday reported a 38 percent drop first-quarter earnings, due to a decline in worksite employees.

Results beat analyst estimates, and Administaff shares soared $3.98, or 15.1 percent, to close at $30.39.

The Houston-based company recorded income of $8.2 million, or 33 cents per share in the quarter, compared with $13.2 million, or 51 cents per share, in the same period a year ago.

Revenue rose to $462 million from $456.1 million due to an increase in monthly fees Administaff received for each worksite employee. However, the company reported a 1.6 percent decline in the average number of employees paid each month during the quarter.

Analysts surveyed by Thomson Financial expected earnings per share of 29 cents on revenue of $466.9 million.

Administaff said despite a downturn in employment, the company is working to control operating expenses, and was able to mitigate further earnings declines during the quarter.