TrueBlue (NYSE:TBI) Issues Earnings Results, Beats Expectations By $0.16 EPS

TrueBlue (NYSE:TBI) issued its quarterly earnings results on Tuesday. The business services provider reported $0.06 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.10) by $0.16, FiscalAI reports. The business had revenue of $443.00 million for the quarter, compared to the consensus estimate of $417.84 million. TrueBlue had a negative return on equity of 6.13% and a negative net margin of 3.35%.

Here are the key takeaways from TrueBlue’s conference call:

• Positive Sentiment: TrueBlue reported second-quarter revenue of $443 million, up 12% year over year and above guidance, with adjusted EBITDA rising to $11 million from $3 million.
• Positive Sentiment: PeopleReady revenue grew 23%, led by nearly doubled energy-sector revenue, while its on-demand business returned to growth; commercial driving also posted its 10th consecutive quarter of growth.
• Positive Sentiment: All three segments expanded profit margins as SG&A fell 7% despite double-digit revenue growth, demonstrating improved operating leverage and supporting management’s expectation for further incremental-margin expansion.
• Neutral Sentiment: Management guided third-quarter revenue growth of 7% to 11%, including expected growth of 11% to 15% at PeopleReady and 3% to 8% at PeopleManagement, while PeopleSolutions is projected between a 6% decline and 3% growth.
• Negative Sentiment: Gross margin declined to 20.7% from 23.6% because prior-year workers’ compensation and subsidy benefits did not repeat, while PeopleSolutions revenue fell 5% amid subdued hiring demand; the quarter also included a $3 million headquarters write-down.

TrueBlue Price Performance

TBI stock opened at $10.26 on Thursday. The company has a 50 day simple moving average of $7.33 and a 200 day simple moving average of $5.55. The stock has a market cap of $312.00 million, a price-to-earnings ratio of -5.41 and a beta of 1.60. TrueBlue has a 1 year low of $3.18 and a 1 year high of $10.25. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.09 and a quick ratio of 2.09.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Zacks Research raised shares of TrueBlue from a “strong sell” rating to a “hold” rating in a report on Monday, April 20th. Wall Street Zen raised shares of TrueBlue from a “sell” rating to a “hold” rating in a research note on Saturday, June 20th. Robert W. Baird set a $9.50 price objective on shares of TrueBlue in a research report on Wednesday. Finally, Weiss Ratings upgraded TrueBlue from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, July 2nd. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $7.75.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Dynamic Technology Lab Private Ltd bought a new stake in TrueBlue during the 1st quarter worth $156,000. Envestnet Asset Management Inc. bought a new position in TrueBlue in the second quarter valued at about $83,000. Geode Capital Management LLC raised its position in TrueBlue by 0.5% in the second quarter. Geode Capital Management LLC now owns 692,713 shares of the business services provider’s stock valued at $4,490,000 after purchasing an additional 3,269 shares during the last quarter. XTX Topco Ltd boosted its stake in shares of TrueBlue by 11.4% during the second quarter. XTX Topco Ltd now owns 18,106 shares of the business services provider’s stock valued at $117,000 after purchasing an additional 1,858 shares in the last quarter. Finally, Hsbc Holdings PLC boosted its stake in shares of TrueBlue by 6.5% during the second quarter. Hsbc Holdings PLC now owns 43,259 shares of the business services provider’s stock valued at $288,000 after purchasing an additional 2,646 shares in the last quarter. 97.15% of the stock is currently owned by institutional investors.

TrueBlue Company Profile

TrueBlue, Inc is a Tacoma, Washington–based workforce solutions provider specializing in temporary staffing, permanent placement and managed service solutions. Operating through its subsidiaries and brands, TrueBlue connects clients across manufacturing, logistics, retail, construction and public sector markets with skilled professionals for both short-term and long-term engagements. The company’s offerings encompass on-demand blue-collar labor, specialized industrial staffing, recruitment process outsourcing (RPO) and contingent workforce management.

TrueBlue’s primary service lines include PeopleReady, which supplies general labor for construction, hospitality and event services; PeopleManagement, which focuses on technical and industrial professionals; PeopleScout, a global RPO business offering end-to-end talent acquisition and consulting; and Staff Management | SMX, which delivers seasonal staffing for large-scale events, amusement parks and federal workforce contracts.