TrueBlue (NYSE:TBI) Posts Quarterly Earnings Results, Beats Estimates By $0.14 EPS

TrueBlue (NYSE:TBI) issued its quarterly earnings data on Wednesday. The business services provider reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.19 by $0.14, FiscalAI reports. The firm had revenue of $520.74 million for the quarter, compared to analysts’ expectations of $468.06 million. TrueBlue had a negative net margin of 2.55% and a negative return on equity of 2.86%.

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

• Revenue rose 21% to $521 million, exceeding the high end of guidance and marking TrueBlue’s fifth consecutive quarter of growth. All three segments grew, while adjusted EBITDA increased to $21 million from $11 million a year earlier.
• Management forecast fourth-quarter revenue growth of 20%–24%, with improvement expected across all three segments and continued year-over-year profitability gains. The outlook accounts for typical holiday and weather impacts, and executives cautioned that energy project timing can be uneven.
• Growth in skilled markets remained strong: energy revenue doubled, commercial driving posted its 11th consecutive quarter of growth, and PeopleReady OnDemand grew for a second straight quarter. Management also cited more than $50 million in annualized PeopleManagement new-business wins during Q3, though some projects may normalize in the coming quarter.
• Gross margin declined to 20.5% from 22.7%, primarily because energy work includes pass-through travel costs that lower reported margin percentages. Working capital also rose $35 million during the quarter; management expects free cash flow to turn positive as working capital normalizes.

TrueBlue Stock Performance

NYSE:TBI opened at $12.20 on Friday. The stock has a 50-day simple moving average of $9.39 and a two-hundred day simple moving average of $6.88. TrueBlue has a 52-week low of $3.18 and a 52-week high of $13.59. The company has a debt-to-equity ratio of 0.32, a quick ratio of 2.28 and a current ratio of 2.28. The firm has a market capitalization of $371.43 million, a PE ratio of -7.92, a P/E/G ratio of 11.71 and a beta of 1.74.

Analyst Ratings Changes

A number of analysts have commented on the stock. Wall Street Zen raised shares of TrueBlue from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Robert W. Baird set a $9.50 price target on shares of TrueBlue in a research note on Wednesday, August 5th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of TrueBlue in a research note on Tuesday, September 29th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and an average target price of $9.50.

About TrueBlue

TrueBlue, Inc (NYSE:TBI) is a workforce solutions company that connects businesses with employees and provides staffing, recruiting and workforce management services. Its offerings support employers seeking temporary, contingent and permanent workers across a range of industries, including manufacturing, logistics, retail, hospitality, construction and other commercial sectors.

The company operates through several specialized brands. PeopleReady provides industrial and general labor staffing, while PeopleManagement offers on-site workforce management and contingent labor solutions.