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Robert Half (RHI) Q2 Earnings Beat, Revenues Miss Estimates
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Robert Half International Inc. (RHI - Free Report) reported mixed second-quarter 2020 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly earnings of 41 cents per share beat the consensus mark by 17% but were down 58% year over year. Revenues of $1.11 billion missed the consensus mark by 1.6% and declined 27% year over year on a reported basis and 26% on an as-adjusted basis.
Notably, the company’s shares have depreciated 14.2% over the past year, compared with the 31.6% decline of the industry it belongs to.
Staffing Revenues Decline, Protiviti Up
Global Staffing revenues of $840 million declined 34% year over year on a reported basis and 33% on an as-adjusted basis. This decline was mainly due to the negative impact of COVID-19 on staffing operations. U.S. staffing revenues of $640 million were down 34% on an adjusted basis. Non-U.S. staffing revenues were down 31% on an as-adjusted basis to $184 million. Currency movements had an unfavorable impact of 0.6% on staffing revenues.
The quarter had 63.4 billing days, flat with the year-ago quarter’s tally. At present, Robert Half operates 326 staffing locations worldwide, with 88 locations situated in 17 countries outside the United States.
Protiviti revenues came in at $284 million, which increased 4% year over year on a reported basis and 4.5% on an as-adjusted basis. This increase was driven by strength in solutions offerings and pipeline. U.S. Protiviti revenues increased 6% year over year on an as-adjusted basis while non-U.S Protiviti revenues declined 2%.
Currency movement lowered revenue growth by 0.6% on a year-over-year basis. Currently, Protiviti, along with its independently owned Member Firms, has a network of 86 locations in 27 countries.
Costs Escalate, Margins Shrink
Gross profit in the quarter was $423 million, down 34% year over year. Gross margin of 38.2% shrunk 380 basis points (bps) year over year. Operating income of $58 million was down 63.5% year over year. Operating margin declined to 5.3% from the year-ago quarter’s 10.5%.
Selling, general and administrative expenses as percentage of total revenues were 32.9%, up 140 bps year over year. The upswing resulted from negative leverage as revenues declined in response to the pandemic.
Key Balance Sheet & Cash Flow Figures
Robert Half ended the first quarter with cash and cash equivalents of $502 million, compared with the $250 million witnessed at the end of the previous quarter. Cash flow from operations was $301 million and capital expenditures were $8 million in the quarter. In the quarter, Robert Half paid out $38 million in dividends.
Currently, Robert Half carries a Zacks Rank #2 (Buy).
Equifax Inc. (EFX - Free Report) reported second-quarter 2020 adjusted earnings of $1.60 per share that beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. Revenues of $982.8 million outpaced the consensus estimate by 6.4% and improved 12% year over year on a reported basis. The stock currently carries a Zacks Rank #3 (Hold).
ManpowerGroup Inc. (MAN - Free Report) reported mixed second-quarter 2020 earnings of 18 cents per share, beating the consensus mark by 38.5% but declining more than 100% year over year. Revenues of $3.74 billion missed the consensus mark by 1.5% and declined 30.4% year over year. The stock currently carries a Zacks Rank #3.
IHS Markit Ltd. recorded second-quarter fiscal 2020 adjusted earnings per share of 69 cents that surpassed the consensus estimate by 6.2% but decreased 3% on a year-over-year basis. Total revenues came in at $1.03 billion, missing the consensus mark by 2.1% and declining 10% from the year-ago quarter. The stock currently carries a Zacks Rank #3.
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With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
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Robert Half (RHI) Q2 Earnings Beat, Revenues Miss Estimates
Robert Half International Inc. (RHI - Free Report) reported mixed second-quarter 2020 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly earnings of 41 cents per share beat the consensus mark by 17% but were down 58% year over year. Revenues of $1.11 billion missed the consensus mark by 1.6% and declined 27% year over year on a reported basis and 26% on an as-adjusted basis.
Notably, the company’s shares have depreciated 14.2% over the past year, compared with the 31.6% decline of the industry it belongs to.
Staffing Revenues Decline, Protiviti Up
Global Staffing revenues of $840 million declined 34% year over year on a reported basis and 33% on an as-adjusted basis. This decline was mainly due to the negative impact of COVID-19 on staffing operations. U.S. staffing revenues of $640 million were down 34% on an adjusted basis. Non-U.S. staffing revenues were down 31% on an as-adjusted basis to $184 million. Currency movements had an unfavorable impact of 0.6% on staffing revenues.
The quarter had 63.4 billing days, flat with the year-ago quarter’s tally. At present, Robert Half operates 326 staffing locations worldwide, with 88 locations situated in 17 countries outside the United States.
Protiviti revenues came in at $284 million, which increased 4% year over year on a reported basis and 4.5% on an as-adjusted basis. This increase was driven by strength in solutions offerings and pipeline. U.S. Protiviti revenues increased 6% year over year on an as-adjusted basis while non-U.S Protiviti revenues declined 2%.
Currency movement lowered revenue growth by 0.6% on a year-over-year basis. Currently, Protiviti, along with its independently owned Member Firms, has a network of 86 locations in 27 countries.
Costs Escalate, Margins Shrink
Gross profit in the quarter was $423 million, down 34% year over year. Gross margin of 38.2% shrunk 380 basis points (bps) year over year. Operating income of $58 million was down 63.5% year over year. Operating margin declined to 5.3% from the year-ago quarter’s 10.5%.
Selling, general and administrative expenses as percentage of total revenues were 32.9%, up 140 bps year over year. The upswing resulted from negative leverage as revenues declined in response to the pandemic.
Key Balance Sheet & Cash Flow Figures
Robert Half ended the first quarter with cash and cash equivalents of $502 million, compared with the $250 million witnessed at the end of the previous quarter. Cash flow from operations was $301 million and capital expenditures were $8 million in the quarter. In the quarter, Robert Half paid out $38 million in dividends.
Currently, Robert Half carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax Inc. (EFX - Free Report) reported second-quarter 2020 adjusted earnings of $1.60 per share that beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. Revenues of $982.8 million outpaced the consensus estimate by 6.4% and improved 12% year over year on a reported basis. The stock currently carries a Zacks Rank #3 (Hold).
ManpowerGroup Inc. (MAN - Free Report) reported mixed second-quarter 2020 earnings of 18 cents per share, beating the consensus mark by 38.5% but declining more than 100% year over year. Revenues of $3.74 billion missed the consensus mark by 1.5% and declined 30.4% year over year. The stock currently carries a Zacks Rank #3.
IHS Markit Ltd. recorded second-quarter fiscal 2020 adjusted earnings per share of 69 cents that surpassed the consensus estimate by 6.2% but decreased 3% on a year-over-year basis. Total revenues came in at $1.03 billion, missing the consensus mark by 2.1% and declining 10% from the year-ago quarter. The stock currently carries a Zacks Rank #3.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
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