Robert Half International Inc. (RHI Quick QuoteRHI - Free Report) is currently benefiting from a strong cash position and robust growth in the Protiviti division.

The company recently reported second-quarter 2021 earnings of $1.33 per share that beat the Zacks Consensus Estimate by 26.7% and increased more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year.

Notably, the stock has gained 81.4% in the past year compared with 65.2% rise of the industry it belongs to.

Image Source: Zacks Investment Research

How is Robert Half Doing?

Protiviti, the company’s wholly-owned subsidiary through which it offers risk consulting, internal audit and information technology consulting services, is in great shape. It is focusing on technology consulting, with additional emphasis on cloud computing, cybersecurity and digital transformation. Protiviti revenues increased 61.6% year over year to $459 million in the second quarter. Adjusted gross margin of 30% increased 430 basis points year over year.

Robert Half has a strong balance sheet. The company had no debt at the end of the second-quarter 2021 against a cash and cash equivalent balance of $543 million.

The company paid out $156 million, $146 million and $136 million in dividends, respectively, in 2020, 2019 and 2018. It repurchased shares worth $138 million, $250 million and $351 million, respectively, in 2020, 2019 and 2018. Such shareholder-friendly initiatives not only instil investors’ confidence, but also positively impact the company's earnings.

Meanwhile, the company is witnessing increase in expenses due to rise in staff compensation costs and heavy investments in technology initiatives. The company's bottom line is likely to remain under pressure going forward.

Zacks Rank and Other Stocks to Consider

Robert Half currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Some other top-ranked stocks in the broader Zacks Business Services sector are ManpowerGroup Inc. (MAN Quick QuoteMAN - Free Report) , Equifax (EFX Quick QuoteEFX - Free Report) and TransUnion (TRU Quick QuoteTRU - Free Report) , each carrying a Zacks Rank #2 (Buy).

The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Equifax and TransUnion is pegged at 23.1%, 15.2% and 22%, respectively.