Robert Half (NYSE:RHI) Shares Gap Up on Strong Earnings

Shares of Robert Half Inc. (NYSE:RHI) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $37.68, but opened at $41.95. Robert Half shares last traded at $42.6590, with a volume of 472,966 shares trading hands.

The business services provider reported $0.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.47 by $0.02. The firm had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.36 billion. Robert Half had a net margin of 2.17% and a return on equity of 9.18%. Robert Half’s revenue was up .4% on a year-over-year basis. During the same period in the previous year, the business posted $0.43 EPS.

Robert Half Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, August 25th were issued a $0.59 dividend. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $2.36 annualized dividend and a yield of 5.6%. Robert Half’s dividend payout ratio is presently 205.22%.

Key Stories Impacting 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

RHI has been the topic of several research analyst reports. 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 note on Monday, July 27th. Robert W. Baird set a $53.00 target price on shares of Robert Half in a research note on Friday. The Goldman Sachs Group reiterated a “sell” rating and issued a $33.00 price target on shares of Robert Half in a research report on Friday. Weiss Ratings cut shares of Robert Half from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, October 9th. Finally, Truist Financial lifted their target price on Robert Half from $40.00 to $50.00 and gave the company a “buy” rating in a research note on Wednesday, July 22nd. Three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $36.75.

Hedge Funds Weigh In On Robert Half

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RHI. RWC Asset Management LLP bought a new position in Robert Half during the third quarter valued at about $388,000. Fifth Third Wealth Advisors LLC bought a new stake in shares of Robert Half in the 3rd quarter worth about $346,000. Reyes Financial Architecture Inc. bought a new stake in Robert Half during the third quarter worth about $36,000. 55 North Private Wealth LLC acquired a new stake in Robert Half during the 3rd quarter valued at $240,000. Finally, Prime Capital Investment Advisors LLC bought a new position in shares of Robert Half in the third quarter valued at about $312,000. Institutional investors and hedge funds own 92.41% of the company’s stock.

Robert Half Price Performance

The stock’s 50 day simple moving average is $38.75 and its two-hundred day simple moving average is $34.17. The company has a market capitalization of $4.34 billion, a P/E ratio of 36.88 and a beta of 0.84.

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.