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What to Expect from Robert Half (RHI) in Q2 Earnings?
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Robert Half International, Inc.(RHI - Free Report) is set to report second-quarter 2016 results after the market closes on Jul 26. Last quarter, this global staffing firm posted in-line earnings.
In fact, Robert Half has delivered positive earnings surprises in two of the last four quarters and in-line earnings in the remaining two, making for an average positive surprise of 0.74%.
Let’s see how things are shaping up prior to this announcement.
Estimates have been going down ahead of the second quarter earnings release, which might be due to macro-economic pressures. Though Robert Half has been witnessing strong year-over-year earnings growth since the past many quarters driven by solid demand for services provided by skilled professionals as well as a growing labor market in the U.S., the company cannot escape from currency fluctuations. Also, the company is expected to incur higher costs in the near term. In view of the rising demand for skilled professionals, Robert Half revealed that it is expected to increase salaries for professional occupations by an average of 4.1% in 2016, which will also increase its costs.
Nevertheless, we are encouraged by the strong revenue growth boosted by broad-based and increasing demand for the company’s professional staffing services, particularly in the U.S.
In the second quarter, Robert Half expects revenues in a range of $1.325–$1.385 billion, representing an increase of 6% from the prior-year quarter on a reported basis. The company expects earnings in a range of 70 cents – 76 cents per share, which implies a growth rate of 8% from the year-ago earnings.
Protiviti also has an impressive growth outlook due to a robust regulatory environment and increased need for stronger internal controls and data security measures.
Earnings Whispers?
Our proven model does not conclusively show that Robert Half is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: ESP for Robert Half is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 73 cents per share.
Zacks Rank: Robert Half carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Stocks in the consumer staples sector that have both a positive earnings ESP and a favorable Zacks Rank and are therefore worth considering include:
Post Holdings, Inc. (POST - Free Report) with an Earnings ESP of +12.77% and a Zacks Rank #1.
Nu Skin Enterprises Inc. (NUS - Free Report) with an Earnings ESP of +2.60% and a Zacks Rank #2.
Tyson Foods, Inc. (TSN - Free Report) with an Earnings ESP of +0.94% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
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What to Expect from Robert Half (RHI) in Q2 Earnings?
Robert Half International, Inc.(RHI - Free Report) is set to report second-quarter 2016 results after the market closes on Jul 26. Last quarter, this global staffing firm posted in-line earnings.
In fact, Robert Half has delivered positive earnings surprises in two of the last four quarters and in-line earnings in the remaining two, making for an average positive surprise of 0.74%.
Let’s see how things are shaping up prior to this announcement.
ROBT HALF INTL Price and EPS Surprise
ROBT HALF INTL Price and EPS Surprise | ROBT HALF INTL Quote
Factors to Consider
Estimates have been going down ahead of the second quarter earnings release, which might be due to macro-economic pressures. Though Robert Half has been witnessing strong year-over-year earnings growth since the past many quarters driven by solid demand for services provided by skilled professionals as well as a growing labor market in the U.S., the company cannot escape from currency fluctuations. Also, the company is expected to incur higher costs in the near term. In view of the rising demand for skilled professionals, Robert Half revealed that it is expected to increase salaries for professional occupations by an average of 4.1% in 2016, which will also increase its costs.
Nevertheless, we are encouraged by the strong revenue growth boosted by broad-based and increasing demand for the company’s professional staffing services, particularly in the U.S.
In the second quarter, Robert Half expects revenues in a range of $1.325–$1.385 billion, representing an increase of 6% from the prior-year quarter on a reported basis. The company expects earnings in a range of 70 cents – 76 cents per share, which implies a growth rate of 8% from the year-ago earnings.
Protiviti also has an impressive growth outlook due to a robust regulatory environment and increased need for stronger internal controls and data security measures.
Earnings Whispers?
Our proven model does not conclusively show that Robert Half is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: ESP for Robert Half is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 73 cents per share.
Zacks Rank: Robert Half carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Stocks in the consumer staples sector that have both a positive earnings ESP and a favorable Zacks Rank and are therefore worth considering include:
Post Holdings, Inc. (POST - Free Report) with an Earnings ESP of +12.77% and a Zacks Rank #1.
Nu Skin Enterprises Inc. (NUS - Free Report) with an Earnings ESP of +2.60% and a Zacks Rank #2.
Tyson Foods, Inc. (TSN - Free Report) with an Earnings ESP of +0.94% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>