TriNet Expects Q4, FY Profit Below View After Q3 Earnings Plunge, Pre-Market Stock Down Over 12%

(RTTNews) - TriNet Group, Inc. (TNET), a HR solutions provider, on Friday announced fourth quarter and annual earnings guidance below analysts' estimates after the company registered a steep decline in quarterly earnings. For the fourth quarter, the company expects earnings per share of negative $0.19 to positive $0.31 per share. Excluding items, earnings are projected to be $0.06 per share to $0.57 per share.

On average, six-analysts polled by Thomson Reuters forecast the firm to earn income per share of $1.16, for the quarter. Analysts' estimates typically exclude special items.

TNET anticipates fourth-quarter revenue growth to be in the range of negative 1 percent to positive 2 percent.

For the full year, the Group expects net profit per share of $3.70 to $4.20, with adjusted earnings per share of $4.95 to $5.45, below analysts' forecast of $6.05 per share.

Annual revenue growth is anticipated to be in the range of 1 percent to 2 percent.

For the third quarter, the Group posted a decline in earnings and that came in below estimates.

Mike Simonds, CEO of TriNet, said: "Small businesses are navigating a challenging business climate, hiring very carefully, and dealing with healthcare cost inflation steeper than we have seen in several years. TriNet is not immune from these conditions and higher healthcare costs adversely impacted our profitability in the quarter."

For the third-quarter, net income was $45 million or $0.89 per share, lower than $94 million or $1.63 per share, in the same period last year.

Excluding items, earnings were $59 million or $1.17 per share, compared with $109 million or $1.91 per share a year ago. Revenue was $1.237 billion, up from the prior year's $1.222 billion.

Analysts, on average, had forecast TriNet to post income per share of $1.31, on revenue of $1.24 billion, for the third quarter.

TNET was down by 12.69 percent at $80 in the pre-market trade on the New York Stock Exchange.