Robert Half (NYSE:RHI) Issues Earnings Results

Robert Half (NYSE:RHI) posted its quarterly earnings data on Thursday. The business services provider reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.47 by $0.02, FiscalAI reports. The business had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.36 billion. Robert Half had a net margin of 2.30% and a return on equity of 9.83%. The company’s revenue was up .4% compared to the same quarter last year. During the same period last year, the firm posted $0.43 earnings per share.

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 22.1%

Shares of Robert Half stock traded up $8.35 during trading hours on Friday, reaching $46.02. 6,893,679 shares of the company’s stock were exchanged, compared to its average volume of 1,811,801. The business has a fifty day moving average of $38.81 and a two-hundred day moving average of $34.25. The company has a market capitalization of $4.71 billion, a P/E ratio of 38.04 and a beta of 0.84. Robert Half has a 1 year low of $21.83 and a 1 year high of $47.14.

Robert Half Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, August 25th were issued a dividend of $0.59 per share. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 5.1%. Robert Half’s dividend payout ratio is presently 195.04%.

Analysts Set New Price Targets

A number of analysts have recently commented on the stock. Truist Financial boosted their target price on shares of Robert Half from $40.00 to $50.00 and gave the stock a “buy” rating in a research note on Wednesday, July 22nd. BMO Capital Markets raised shares of Robert Half from a “market perform” rating to an “outperform” rating and set a $47.00 price target on the stock in a research note on Monday, July 27th. Jefferies Financial Group reiterated an “underperform” rating and issued a $33.00 price objective on shares of Robert Half in a report on Friday. Robert W. Baird set a $53.00 price objective on Robert Half in a report on Friday. Finally, Zacks Research upgraded Robert Half from a “strong sell” rating to a “hold” rating in a research note on Tuesday, July 14th. Three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $38.50.

Trending Headlines about Robert Half

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

• Positive Sentiment: Earnings beat expectations: Robert Half reported third-quarter revenue of $1.359 billion, broadly in line with estimates, while earnings per share rose to $0.49 from $0.43 a year earlier and exceeded the $0.47 consensus. Robert Half Reports Third-Quarter Financial Results
• Positive Sentiment: Talent Solutions returned to growth: Adjusted Talent Solutions revenue increased 2% year over year, its first increase since 2022. Permanent placement revenue grew 6%, while contract talent revenue increased 1%, suggesting staffing demand is stabilizing. Robert Half: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Improving demand and guidance: Management cited better hiring activity, stronger October trends in key staffing categories, and improving demand for risk and compliance consulting. Fourth-quarter guidance implies approximately 3% adjusted revenue growth and roughly 30% earnings growth at the midpoint. How Staffing Firm Robert Half Is Bucking a Stalling Job Market
• Positive Sentiment: Compliance opportunity: Recent regulatory enforcement and bank fines are creating a potentially lucrative pipeline for Robert Half’s risk and compliance consulting business. Management also said artificial intelligence is changing required skills rather than eliminating demand for staffing and consulting roles. Why Robert Half Stock Jumped More Than 20% Today
• Neutral Sentiment: Analyst reaction was supportive but cautious: JPMorgan raised its price target from $40 to $45 but maintained a “neutral” rating, while other brokerages reportedly lifted targets following the results. Robert Half Stock Rises as Analysts Lift Targets

About Robert Half

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.