Robert Half (RHI - Analyst Report) is coming off a
strong positive earnings surprise and is a Zacks #1 Rank (Strong
Robert Half International provides staffing and risk consulting
services. Its Accountemps division offers temporary staffing in
the fields of accounting, tax, and finance. The company's
OfficeTeam division places temporary and full-time office and
administrative personnel, ranging from word processors to office
managers. Robert Half International Inc. was founded in 1948 and
is headquartered in Menlo Park, California.
Robert Half Beats Estimates in six of Seven Quarters
Robert Half topped the Zacks Consensus
Estimate in six of the last seven quarters. The average beat,
including the quarter that came in $0.01 below expectations, of
$0.02 translates to a nearly 9% positive earnings surprise. The
stock has moved higher by an average of 1.9% following the
The December 2011 quarter was the lone miss of the Zacks Consensus
Estimate as the company reported $0.30, $0.01 less than expected.
The company also missed on the topline in reporting $973 million
in revenue, approximately $17 million below expectations. In the
session following the earnings release, the stock traded lower by
more than 8%.
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Robert Half's Most Recent Reported Earnings
On April 24, 2012 Robert Half reported revenue of $1.015 billion
up from $881
million reported in year ago quarter, an increase of 15%.
share came in at $0.34 compared to $0.18 in the year ago period,
an increase of 89%. In the session following the earnings release,
the stock traded higher by more than 7%.
Robert Half Sees Estimates Moving Higher
Estimates for Robert Half have been rising of late. The Zacks
Consensus Estimate for 2012 for Robert Half stood at $1.35 as of
January 2012. The consensus has thus moved higher to $1.47. Over
the same time period estimates for 2013 have moved from $1.17 to
$1.83. The implied earnings growth rate of more than 24% is
just what aggressive growth investors are look for.
Robert Half trades higher than the industry average for nearly
every metric that aggressive growth investors tend to focus on.
The trailing twelve months PE of 23x is modestly higher than the
16x industry average, while the forward PE of 19x is closer to the
industry average of 14x. The price to book multiple of nearly 5x
for Robert Half is nearly double the industry average of 2.6x.
The lone metric that shows the company trading at a discount is
the 1x price to sales multiple compared to a 2x industry average.
A quick look at the price and consensus chart shows an earnings
picture that is mostly improving steadily since the 2009
rescission. As earnings expectations tailed off in 2008 for
the 2009 year, the stock followed suit. 2010 and 2011 saw solid
earnings estimate increase as did 2012. The 2013 line appears to
have been artificially low, most likely due to a single estimate
that was never revised. The gaps in the earnings lines showcase
the consistent earnings growth, something that aggressive growth
investors usually look for. Robert Half is a
Zacks #1 Rank (Strong Buy).
Brian Bolan is the Aggressive Growth Stock Strategist
Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor
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