Why TriNet Group Inc.’s Shares Popped 16% Today

What happened

Shares of TriNet Group Inc. (NYSE: TNET) rose as much as 15.6% on Wednesday after the human resources company reportedfirst-quarter earnings. As of 12:50 p.m. EDT, the stock was still up 13.1% on the day.

So what

Revenue was up 10% in the quarter to $807.6 million leading to a 22% increase in net service revenue to $199.0 million. Net income jumped from $11.6 million a year ago to $28.7 million, or $0.41 per share and adjusted net income was $31.6 million, or $0.45 per share. Analysts were only expecting $178.2 million in net revenue and $0.32 per share in adjusted earnings so results were well ahead of the bar Wall Street had set.

Image source: Getty Images.

Management highlighted the company’s management team and differentiated vertical products as the drivers of improving financial performance.

Now what

As hiring improves and businesses look for flexible ways to grow their labor force, TriNet has been a big beneficiary. Its cash flow from operations increased a whopping 88% as well in the first quarter to $75.9 million, showing the leverage in the business’ growth. Given hiring trends and the rapidly improving bottom line, I think today’s pop in TriNet’s shares may be just the beginning.

READ:  Twitter Inc.'s Vine Gets a Musical Makeover

10 stocks we like better than Trinet GroupWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now… and Trinet Group wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of May 1, 2017

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

View more information: https://www.foxbusiness.com/markets/why-trinet-group-inc-s-shares-popped-16-today

See more articles in category: Finance

Leave a Reply

Back to top button