Robert Half Reports Strong 3Q

Robert Half International Inc. (RHI - Analyst Report), a leading global staffing and risk consulting services provider, reported solid third quarter earnings of $44.2 million or 31 cents a share, up considerably from $20.6 million or 14 cents a share in the year-earlier quarter. Earnings per share also exceeded the Zacks Consensus Estimate of 28 cents.

Profits were primarily driven by continued demand for professional staffing and consulting services. Further, Robert Half registered sequential as well as year-over-year revenue growth across all its business segments in the reported quarter

Quarter in Detail

During the quarter, Robert Half’s total revenue increased 20.5% to $984.7 million compared with $817.3 million in the year-ago period.

The year-over-year improvement was attributable to higher pay bill spreads and higher conversion revenues, partially offset by higher state unemployment taxes.

Robert Half’s overall gross profit was $391.9 million or 32.5% of the total revenue in the third quarter of 2011 as against $271.9 million or 33.3% of revenues in the prior-year quarter.

Operating income almost doubled to $72.1 million in the quarter from $37.2 million in the comparable quarter last year.

Segment Details

All the six segments of the company reported positive revenue growth. Revenue at Accountemps increased 17.3% to $366.4 million, while the same for Office Team surged 20% to $196.3 million. Revenue at Robert Half Technology expanded to $113.8 million from $87.3 million and Robert Half Management Resources revenue shot up 20% to $118.2 million from $98.16 million. Robert Half Finance and Accounting and Protiviti division revenues jumped 38% and 12% to $79.1 million and $110.9 million, respectively.

Financial Update

Robert Half had cash and cash equivalents of $242.7 million in the third quarter of 2011.

Accounts receivables were $516.1 million at the end of the third quarter of 2011, while current liabilities amounted to $483.4 million.

Guidance

Going ahead, management expects to witness broad-based revenue growth and improving demand within its professional staffing operations and Protiviti.

Based in Menlo Park, California, Robert Half provides staffing and risk consulting services in North America, South America, Europe, Asia, and Australia. The company primarily competes with Manpower Inc. (MAN - Analyst Report).

Robert Half currently has a Zacks #4 Rank, which implies a short-term ‘Sell’ rating on the stock.

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