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Robert Half (RHI) Q4 Earnings and Revenues Beat Estimates

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Robert Half International Inc. (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.

Margins Shrink

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.

Q4 Guidance

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 - Free Report) , Waste Management (WM - Free Report) and Republic Services (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.

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