Robert Half (NYSE:RHI) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Robert Half (NYSE:RHI) issued its quarterly earnings data on Thursday. The business services provider reported $0.49 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.47 by $0.02, FiscalAI reports. The business had revenue of $1.36 billion during the quarter, compared to the consensus estimate of $1.36 billion. Robert Half had a net margin of 2.17% and a return on equity of 9.18%. The firm’s quarterly revenue was up .4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.43 EPS.

Here are the key takeaways from Robert Half’s conference call:

• Talent Solutions returned to growth: Third-quarter revenue rose 2% year over year, led by 6% growth in Permanent Placement and 1% growth in Contract Talent Solutions. Management said hiring activity is steadily improving, though volumes remain slightly below last year.
• Protiviti is expected to return to growth in Q4: Demand for risk and compliance work, particularly anti-money-laundering remediation following new regulatory enforcement actions, increased meaningfully. Management said these projects should last multiple quarters and generate additional contractor demand through Talent Solutions.
• Profitability improved substantially: Adjusted operating income increased to $73 million, or 5.3% of revenue, from $61 million, or 4.5%, a year earlier. Gross-margin expansion, cost reductions, and better utilization drove Talent Solutions operating income up 50% year over year, while Q4 adjusted EPS guidance implies 30% growth at the midpoint.
• Near-term seasonality remains a headwind: Management expects Protiviti’s first-quarter margins to decline by mid-single-digit percentage points sequentially because of internal-audit seasonality and January compensation increases. The Q1 tax rate is also expected to be unusually volatile at 36%-40%, which could pressure earnings.

Robert Half Stock Up 10.6%

RHI opened at $41.68 on Friday. Robert Half has a twelve month low of $21.83 and a twelve month high of $46.70. The company’s 50-day moving average price is $38.75 and its two-hundred day moving average price is $34.17. The stock has a market cap of $4.27 billion, a price-to-earnings ratio of 36.40 and a beta of 0.84.

Robert Half Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, August 25th were paid a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a yield of 5.7%. The ex-dividend date was Tuesday, August 25th. Robert Half’s payout ratio is presently 205.22%.

Trending Headlines about Robert Half

Here are the key news stories impacting Robert Half this week:

• Positive Sentiment: Robert Half reported third-quarter earnings of $0.49 per share, above the $0.47 analyst consensus and up from $0.43 in the year-ago quarter. The earnings beat likely supported investor buying. Robert Half Beats Q3 Earnings Estimates
• Positive Sentiment: Quarterly revenue reached approximately $1.36 billion, while net income increased year over year. The results indicate that profitability improved despite limited top-line growth. Robert Half Reports Third-Quarter Financial Results
• Neutral Sentiment: Revenue was essentially in line with Wall Street expectations and increased only about 0.4% from the prior-year period. The sales performance met forecasts but does not yet signal a strong recovery in demand for staffing services. Robert Half Q3 Key Metrics
• Negative Sentiment: Robert Half’s reported net margin was relatively low at 2.17%, and return on equity was 9.18%. These figures may temper enthusiasm if investors remain concerned about margin pressure and the pace of an employment-market recovery. Robert Half Q3 Earnings Call Transcript

Analyst Ratings Changes

Several research firms have commented on RHI. BMO Capital Markets raised shares of Robert Half from a “market perform” rating to an “outperform” rating and set a $47.00 target price on the stock in a research report on Monday, July 27th. Weiss Ratings downgraded Robert Half from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, October 9th. Zacks Research upgraded Robert Half from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 14th. The Goldman Sachs Group reiterated a “sell” rating and set a $33.00 price target on shares of Robert Half in a report on Friday. Finally, Jefferies Financial Group reissued an “underperform” rating on shares of Robert Half in a research report on Friday. Three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $36.43.

Robert Half Company Profile

Robert Half Inc (NYSE: RHI) is a global talent solutions and business consulting company. Through its Robert Half brand, the company provides temporary, project-based and permanent staffing services, connecting employers with professionals in accounting and finance, administrative and customer support, technology, legal, and marketing and creative fields.

Robert Half also operates Protiviti, a global consulting firm that helps organizations address internal audit, risk and compliance, technology, business performance, and digital transformation challenges.