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Bear of the Day: Robert Half (RHI)

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Key Takeaways

  • Robert Half is a staffing firm trying to navigate a slow job market in 2025.
  • Earnings are expected to fall by double digits for the third year in a row.
  • Robert Half pays a big dividend, yielding 5.9%, but with earnings falling, is it safe?

Robert Half Inc. (RHI - Free Report) is expected to see both a sales and earnings decline in 2025 as the job market remains weak. This Zacks Rank #5 (Strong Sell) has also fallen to a five-year low.

Robert Half is a specialized talent solutions and business consulting firm. It helps people find a job.

It offers contract talent and permanent placement solutions in the fields of finance and accounting, technology, marketing and creative, legal, and administrative and customer support. It also provides executive search services. 

Robert Half Missed on Earnings in the First Quarter of 2025

On Apr 23, 2025, Robert Half reported its first quarter 2025 results and it missed on earnings by $0.19. It reported $0.17 versus the consensus of $0.36.

It was the second miss in a row and the third miss out of the last four quarters.

It compares to $0.61 a share for the prior year’s quarter.

Global enterprise revenues were down 8% on a reported basis, and 6% on an adjusted basis, to $1.352 billion from $1.476 billion a year ago.

Business is headed in the wrong direction.

“Business confidence levels moderated during the quarter in response to heightened economic uncertainty over U.S. trade and other policy developments,” said M. Keith Waddell, CEO.

“Client and job seeker caution continues to elongate decision cycles and subdue hiring activity and new project starts,” he added.

Analysts Remain Bearish on Robert Half for 2025

Earnings have fallen in the prior two years, in 2023 and 2024.

Analysts don’t see a turnaround in the business in 2025 with earnings falling for the third year as well. 1 estimate was cut in the last 60 days for 2025 which pushed the Zacks Consensus down to $1.78 from $2.02.

They do expected a rebound in 2026, with the Zacks Consensus rising back to $2.58.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares of Robert Half Sink to 5-Year Lows

Wall Street abandoned Robert Half in 2025. Shares of Robert Half have fallen to 5-year lows.

They’re down 18.3% over the last 5 years compared to the S&P 500, which has gained 101% during that same time.

Zacks Investment Research
Image Source: Zacks Investment Research

And it isn’t cheap. Robert Half trades with a forward price-to-earnings (P/E) ratio of 22.7. A P/E ratio under 15 is usually considered a value stock.

However, it is paying a dividend in 2025 so you will get rewarded for your patience. Last quarter, it paid $0.59 per share, which is $2.36 annualized. That’s a yield of 5.9%.

But be warned. The 2025 Zacks Consensus is only looking for earnings of $1.78. Will it continue to pay out that level of dividend with earnings on the decline?

Investors might want to wait on the sidelines until Robert Half reports its second quarter 2025 results in late July. Will there be a light at the end of the tunnel?  


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