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Robert Half's (RHI) Q1 Earnings and Revenues Beat Estimates

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Robert Half International Inc. (RHI - Free Report) reported impressive first-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.

Quarterly earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.

Notably, the company’s shares have appreciated a massive 99.5% over the past year, outperforming the78.5% rally of the industry it belongs to.

Staffing Revenues Decline, Protiviti Up

Global Staffing revenues of $1 billion declined 17.5% year over year on a reported and 17.8% on an adjusted basis. U.S. staffing revenues of $759 million were down 19.6% on a reported and 18.6% on an adjusted basis. Non-U .S. staffing revenues declined 10.1% on a reported and 14.8% on an adjusted basis to $242 million. Currency exchange rate movements increased staffing revenues by $17 million.

The quarter had 62.3 billing days compared with 63.1 in 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 $397 million, increasing 35.1% year over year on a reported basis and 40.7% on an adjusted basis. The U.S. Protiviti revenues of $316 million increased 35.5% year over year on a reported basis and 37.1% on an adjusted basis. Non-U.S. Protiviti revenues of $81 million increased 33.8% on a reported basis and 26.1% on an adjusted basis.  

Margins Expand

Gross profit in the quarter was $561.7 million, down 8.6% year over year. Gross margin of 40.2% declined 60 basis points year over year. Operating income came in at $151 million with an operating margin of 10.8%.

Robert Half International Inc. Price, Consensus and EPS Surprise

Robert Half International Inc. Price, Consensus and EPS Surprise

Key Balance Sheet and Cash Flow Figures

Robert Half ended the quarter with cash and cash equivalents balance of $498 million compared with $547 million witnessed at the end of the previous quarter. The company generated $68 million of cash from operations and capital expenditures were $9.7 million. It paid out $44 million in dividends and repurchased shares worth $61 million in the reported period.

Q2 Guidance

For the second quarter of 2021, Robert Half expects revenues in the range of $1.435 billion to $1.515 billion, the midpoint ($1.475 billion) of which is higher than the Zacks Consensus Estimate of $1.38 billion.

EPS is expected between $1 and $1.1, the midpoint ($1.05) of which is higher than the Zacks Consensus Estimate of 80 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.

Recent Performance of Some Other Business Services Companies

Equifax (EFX - Free Report) reported better-than-expected first-quarter 2021 results. Adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and improved on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus estimate by 7.9% and improved 26.6% year over year.

IHS Markit first-quarter fiscal 2021 adjusted earnings per share of 71 cents beat the consensus mark by 1.4% and increased 7.6% on a year-over-year basis. Total revenues came in at $1.12 billion, surpassing the consensus mark by 1% and increasing 3.6% from the year-ago quarter.

Omnicom (OMC - Free Report) reported first-quarter 2021 adjusted earnings of $1.33 per share that beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.

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