Administaff Posts Profit Increase

Third-quarter earnings per share rise 65% on 19% revenue growth.
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Administaff

(ASF)

Wednesday posted third-quarter results that showed a 69% year-over-year increase in net income.

The staffing company reported net income of $12.1 million, or 43 cents a share, up from $7.2 million, or 26 cents a share, in the prior-year period. Analysts, on average, were looking for earnings of 39 cents a share, according to Thomson First Call.

The Houston-based company generated third-quarter revenue of $338.4 million, up from $285.2 million a year ago but slightly shy of the $342.1 million analyst estimate. Administaff chalked up the 18.7% revenue increase to a 13.3% rise in the average number of worksite employees paid per month and a 4.7% increase in revenue per worksite employee per month.

Shares were higher by $3.36, or 9.8%, at $37.81 in recent afternoon trading Wednesday.