Robert Half International Inc. (RHI - Free Report) reported impressive second-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Quarterly earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.
Notably, the company’s shares have appreciated 38.5% year to date, outperforming the 29.8% rally of the industry it belongs to.
Staffing and Protiviti Revenues Rise
Global Staffing revenues of $1.1 billion increased 36.1% year over year on a reported and 33.2% on an adjusted basis. U.S. staffing revenues of $855 million were up 33.6% on a reported and 33.8% on an adjusted basis. Non-U.S. staffing revenues increased 44.8% on a reported and 30.9% on an adjusted basis to $267 million. Currency exchange rate movements increased staffing revenues by $24 million.
The quarter had 63.4 billing days, unchanged from the year-ago quarter. At present, Robert Half operates 322 staffing locations worldwide, with 86 locations situated in 17 countries outside the United States.
Protiviti revenues came in at $459 million, up 61.6% year over year on a reported basis and 58.8% on an adjusted basis. The U.S. Protiviti revenues of $366 million increased 62.6% year over year on a reported basis and 62.8% on an adjusted basis. Non-U.S. Protiviti revenues of $93 million increased 57.6% on a reported basis and 43.5% on an adjusted basis.
Margins Expand
Adjusted gross profit in the quarter was $669 million, up 58.1% year over year. Adjusted gross profit margin of 42.3% improved 410 basis points year over year.
Key Balance Sheet and Cash Flow Figures
Robert Half ended the quarter with a cash and cash equivalent balance of $543 million compared with $498 million witnessed at the end of the previous quarter. The company generated $165 million of cash from operations and capital expenditures were $6 million. It paid out $42 million in dividends and repurchased shares worth $63 million in the reported period.
Q3 Guidance
For the third quarter of 2021, Robert Half expects revenues in the range of $1.61 billion to $1.69 billion, the midpoint ($1.65 billion) of which is higher than the current Zacks Consensus Estimate of $1.53 billion.
EPS is expected between $1.35 and $1.45, the midpoint ($1.4) of which is higher than the Zacks Consensus Estimate of $1.06.
Currently, Robert Half carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2021 results. Adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved 23.8% on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 25.6% year over year.
IHS Markit’s second-quarter fiscal 2021 adjusted earnings per share of 81 cents beat the consensus mark by 1.3% and increased 17.4% on a year-over-year basis. Total revenues came in at $1.2 billion, surpassing the consensus mark by 3.8% and increasing 15% from the year-ago quarter.
Omnicom (OMC - Free Report) reported second-quarter 2021 adjusted earnings of $1.46 per share that beat the consensus mark by 9.8% and increased 58.7% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 6.7% and increased 27.5% year over year.
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Robert Half International Inc. (RHI - Free Report) reported impressive second-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Quarterly earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.
Notably, the company’s shares have appreciated 38.5% year to date, outperforming the 29.8% rally of the industry it belongs to.
Staffing and Protiviti Revenues Rise
Global Staffing revenues of $1.1 billion increased 36.1% year over year on a reported and 33.2% on an adjusted basis. U.S. staffing revenues of $855 million were up 33.6% on a reported and 33.8% on an adjusted basis. Non-U.S. staffing revenues increased 44.8% on a reported and 30.9% on an adjusted basis to $267 million. Currency exchange rate movements increased staffing revenues by $24 million.
The quarter had 63.4 billing days, unchanged from the year-ago quarter. At present, Robert Half operates 322 staffing locations worldwide, with 86 locations situated in 17 countries outside the United States.
Protiviti revenues came in at $459 million, up 61.6% year over year on a reported basis and 58.8% on an adjusted basis. The U.S. Protiviti revenues of $366 million increased 62.6% year over year on a reported basis and 62.8% on an adjusted basis. Non-U.S. Protiviti revenues of $93 million increased 57.6% on a reported basis and 43.5% on an adjusted basis.
Margins Expand
Adjusted gross profit in the quarter was $669 million, up 58.1% year over year. Adjusted gross profit margin of 42.3% improved 410 basis points year over year.
Key Balance Sheet and Cash Flow Figures
Robert Half ended the quarter with a cash and cash equivalent balance of $543 million compared with $498 million witnessed at the end of the previous quarter. The company generated $165 million of cash from operations and capital expenditures were $6 million. It paid out $42 million in dividends and repurchased shares worth $63 million in the reported period.
Q3 Guidance
For the third quarter of 2021, Robert Half expects revenues in the range of $1.61 billion to $1.69 billion, the midpoint ($1.65 billion) of which is higher than the current Zacks Consensus Estimate of $1.53 billion.
EPS is expected between $1.35 and $1.45, the midpoint ($1.4) of which is higher than the Zacks Consensus Estimate of $1.06.
Currently, Robert Half carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2021 results. Adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved 23.8% on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 25.6% year over year.
IHS Markit’s second-quarter fiscal 2021 adjusted earnings per share of 81 cents beat the consensus mark by 1.3% and increased 17.4% on a year-over-year basis. Total revenues came in at $1.2 billion, surpassing the consensus mark by 3.8% and increasing 15% from the year-ago quarter.
Omnicom (OMC - Free Report) reported second-quarter 2021 adjusted earnings of $1.46 per share that beat the consensus mark by 9.8% and increased 58.7% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 6.7% and increased 27.5% year over year.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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