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Why Is Robert Half (RHI) Down 16.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Robert Half (RHI - Free Report) . Shares have lost about 16.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Robert Half due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Robert Half Q4 Earnings In Line, Revenues Beat Estimates
Robert Half International Inc.’s fourth-quarter 2019 earnings came in line with the Zacks Consensus Estimate and revenues beat the same.
Quarterly earnings of 98 cents per share were up 3.2% year over year. The reported figure came at the higher end of the company’s guided range of 94 cents to $1.
Revenues of $1.54 billion marginally beat the consensus mark and increased 3.8% year over year on a reported basis and 4.3% on an adjusted basis. Revenues were at the higher end of the guided range of $1.5-$1.565 billion.
Solid Segmental Performance
Global Staffing revenues of $1.23 billion increased 1.2% year over year on a reported basis and 2.1% on an adjusted basis. U.S. staffing revenues of $962 million increased 3% on a reported basis and 3.2% on an adjusted basis. Non-U.S. staffing revenues declined 4.8% on a reported basis and 1.5% on an adjusted basis to $271 million.
Currency movements had an unfavorable impact of 0.5% on staffing revenues.
The quarter had 61.7 billing days, flat with the year-ago quarter. At present, Robert Half operates 326 staffing locations worldwide, with 87 locations situated in 17 countries outside the United States.
Protiviti: Protiviti revenues were $304.7 million, which increased 15.7% year over year on a reported basis and 14.1% on an adjusted basis, with strength across the U.S. and non-U.S. regions. Protiviti revenues from the United States grew 17.3% on a reported basis and 17.5% on an adjusted basis. The same from international regions rose 10.4% on a reported basis and 3.3% on an adjusted basis.
Currency movement lowered revenue growth by 0.3% on a year-over-year basis. Currently, Protiviti, along with its independently-owned Member Firms, has a network of 36 locations in 27 countries.
Operating Results
Gross profit in fourth-quarter 2019 was $646.4 million, up 3% year over year. Gross margin of 41.6% declined 20 basis points (bps) year over year.
Operating income of $153.2 million was down slightly year over year. Operating margin declined to 10% from 10.4% in the year-ago quarter.
Selling, general and administrative expenses increased 4.2% year over year to $485.7 million.
Balance Sheet
Robert Half ended the quarter with cash and cash equivalents of $270.5 million compared with $312.7 million at the end of the previous quarter. Cash flow from operations was $81 million and capital expenditures were $19 million in the quarter.
In the reported quarter, Robert Half bought back around 1 million shares for $59 million. The company has 2.5 million shares available for repurchase under its existing repurchase plan as approved by the board of directors. It paid out $36 million in dividends.
First-Quarter 2020 Guidance
Earnings are anticipated between 90 cents and 96 cents. Revenues are expected between $1.515 billion and $1.58 billion.
How Have Estimates Been Moving Since Then?
Estimates revision followed a downward path over the past two months.
VGM Scores
At this time, Robert Half has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Robert Half has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Robert Half (RHI) Down 16.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Robert Half (RHI - Free Report) . Shares have lost about 16.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Robert Half due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Robert Half Q4 Earnings In Line, Revenues Beat Estimates
Robert Half International Inc.’s fourth-quarter 2019 earnings came in line with the Zacks Consensus Estimate and revenues beat the same.
Quarterly earnings of 98 cents per share were up 3.2% year over year. The reported figure came at the higher end of the company’s guided range of 94 cents to $1.
Revenues of $1.54 billion marginally beat the consensus mark and increased 3.8% year over year on a reported basis and 4.3% on an adjusted basis. Revenues were at the higher end of the guided range of $1.5-$1.565 billion.
Solid Segmental Performance
Global Staffing revenues of $1.23 billion increased 1.2% year over year on a reported basis and 2.1% on an adjusted basis. U.S. staffing revenues of $962 million increased 3% on a reported basis and 3.2% on an adjusted basis. Non-U.S. staffing revenues declined 4.8% on a reported basis and 1.5% on an adjusted basis to $271 million.
Currency movements had an unfavorable impact of 0.5% on staffing revenues.
The quarter had 61.7 billing days, flat with the year-ago quarter. At present, Robert Half operates 326 staffing locations worldwide, with 87 locations situated in 17 countries outside the United States.
Protiviti: Protiviti revenues were $304.7 million, which increased 15.7% year over year on a reported basis and 14.1% on an adjusted basis, with strength across the U.S. and non-U.S. regions. Protiviti revenues from the United States grew 17.3% on a reported basis and 17.5% on an adjusted basis. The same from international regions rose 10.4% on a reported basis and 3.3% on an adjusted basis.
Currency movement lowered revenue growth by 0.3% on a year-over-year basis. Currently, Protiviti, along with its independently-owned Member Firms, has a network of 36 locations in 27 countries.
Operating Results
Gross profit in fourth-quarter 2019 was $646.4 million, up 3% year over year. Gross margin of 41.6% declined 20 basis points (bps) year over year.
Operating income of $153.2 million was down slightly year over year. Operating margin declined to 10% from 10.4% in the year-ago quarter.
Selling, general and administrative expenses increased 4.2% year over year to $485.7 million.
Balance Sheet
Robert Half ended the quarter with cash and cash equivalents of $270.5 million compared with $312.7 million at the end of the previous quarter. Cash flow from operations was $81 million and capital expenditures were $19 million in the quarter.
In the reported quarter, Robert Half bought back around 1 million shares for $59 million. The company has 2.5 million shares available for repurchase under its existing repurchase plan as approved by the board of directors. It paid out $36 million in dividends.
First-Quarter 2020 Guidance
Earnings are anticipated between 90 cents and 96 cents. Revenues are expected between $1.515 billion and $1.58 billion.
How Have Estimates Been Moving Since Then?
Estimates revision followed a downward path over the past two months.
VGM Scores
At this time, Robert Half has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Robert Half has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.