Robert Half International Inc. ( RHI Quick Quote RHI - Free Report) reported impressive fourth-quarter 2020 results, with earnings and revenues beating the Zacks Consensus Estimate.
Quarterly earnings of 84 cents per share beat the consensus mark by 23.5% but were down 14.3% year over year. Revenues of $1.3 billion surpassed the consensus mark by 8% but declined 15.2% year over year on a reported basis and 16% on an as-adjusted basis.
Notably, the company’s shares have depreciated 6.1% over the past year, compared with the 0.9% decline of the
industry it belongs to. Staffing Revenues Decline, Protiviti Up Global Staffing revenues of $942 million declined 23.6% year over year on a reported as well as 24.3% on as-adjusted basis. U.S. staffing revenues of $723 million were down 24.8% on a reported and 24.6% on an as-adjusted basis. Non-U.S. staffing revenues declined 19.3% on a reported basis and 23.4% on an as-adjusted basis to $219 million. Currency exchange rate movements increased staffing revenues by $8 million.
The quarter had 61.7 billing days compared with 64.3 in the year-ago quarter. 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 $362 million, which increased 18.9% year over year on a reported basis and 17.9% on an as-adjusted basis. The U.S. Protiviti revenues of $294 million increased 22.9% year over year on a reported basis and 23.3% on an as-adjusted basis. Non-U.S Protiviti revenues of $68 million declined 4.3% on a reported basis and 1.7% on an as-adjusted basis.
Currently, Protiviti, along with its independently owned Member Firms, has a network of 86 locations in 27 countries.
Gross profit in the quarter was $514.3 million, down 19.2% year over year. Gross margin of 39.4% shrunk 200 basis points year over year. Operating income of $129.6 million was down 16% year over year. Operating margin declined to 9.3% from the year-ago quarter’s 10%.
Key Balance Sheet and Cash Flow Figures
Robert Half ended the quarter with cash and cash equivalents of $574 million compared with $587 million witnessed at the end of the previous quarter. Robert Half paid out $39 million in dividends and repurchased shares worth $63 million in the reported period.
For the first quarter of 2021, Robert Half expects revenues in the range of $1.29 billion to $1.37 billion, the midpoint ($1.33 billion) of which is higher than the Zacks Consensus Estimate of $1.24 billion.
EPS is expected between 74 cents and 84 cents, the midpoint (79 cents) of which is higher than the Zacks Consensus Estimate of 68 cents.
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 Upcoming Releases
Investors interested in the broader Zacks
Business Services sector are keenly awaiting fourth-quarter 2020 earnings reports of key players like Waste Connections ( WCN Quick Quote WCN - Free Report) , Waste Management ( WM Quick Quote WM - Free Report) and Republic Services ( RSG Quick Quote RSG - Free Report) . While Waste Connections will release earnings on Feb 17, Waste Management and Republic Services will report the same on Feb 18 and Feb 22, respectively. The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>