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

By Travis Hoium Markets Fool.com

What happened

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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.

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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.

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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.