Earnings Outlook For Trinet Group

Trinet Group TNET is gearing up to announce its quarterly earnings on Friday, 2024-10-25. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Trinet Group will report an earnings per share (EPS) of $1.31.

Investors in Trinet Group are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings History Snapshot

The company's EPS beat by $0.25 in the last quarter, leading to a 0.0% drop in the share price on the following day.

Here's a look at Trinet Group's past performance and the resulting price change:

Trinet Group Share Price Analysis

Shares of Trinet Group were trading at $93.31 as of October 23. Over the last 52-week period, shares are down 10.92%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Insights Shared by Analysts on Trinet Group

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Trinet Group.

A total of 4 analyst ratings have been received for Trinet Group, with the consensus rating being Buy. The average one-year price target stands at $121.5, suggesting a potential 30.21% upside.

Comparing Ratings with Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Alight, Insperity and ManpowerGroup, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Buy trajectory for Alight, with an average 1-year price target of $9.4, implying a potential 89.93% downside.
• For Insperity, analysts project an Underperform trajectory, with an average 1-year price target of $90.0, indicating a potential 3.55% downside.
• ManpowerGroup is maintaining an Neutral status according to analysts, with an average 1-year price target of $72.0, indicating a potential 22.84% downside.

Peers Comparative Analysis Summary

In the peer analysis summary, key metrics for Alight, Insperity and ManpowerGroup are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Trinet Group ranks highest in Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Delving into Trinet Group's Background

TriNet offers outsourced payroll and human capital management solutions for small and midsize businesses via a professional employer organization model. Under the PEO model, TriNet enters a co-employment arrangement and acts as the employer of record for administrative and regulatory purposes for clients' employees, known as worksite employees. Clients leverage the scale and expertise of TriNet to access competitive employee benefits, share employment risk liability, access compliance support, and outsource mission-critical day-to-day HR functions such as payroll and tax administration. Following the acquisition of Zenefits and Clarus R+D in 2022, TriNet derives the minority of its revenue from self-service HCM software and R&D tax credit services.

Financial Milestones: Trinet Group's Journey

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Trinet Group's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 1.41%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: Trinet Group's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.89% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Trinet Group's ROE excels beyond industry benchmarks, reaching 49.38%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Trinet Group's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.56% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Trinet Group's debt-to-equity ratio is notably higher than the industry average. With a ratio of 11.05, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Trinet Group visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.