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Robert Half's (RHI) Q3 Earnings Beat Estimates, Increase Y/Y

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

Quarterly earnings of $1.53 per share beat the consensus mark by 9.3% and were up more than 100% year over year. Revenues of $1.71 billion surpassed the consensus mark by 4% and increased 44% year over year on a reported basis and 43% on an as-adjusted basis.

The company’s shares have appreciated 96.5% over the past year, significantly outperforming the 65.8% growth of the industry it belongs to.

Staffing and Protiviti Revenues Rise

Global Staffing revenues of $1.2 billion increased 38% year over year on an ad- adjusted basis. U.S. staffing revenues of $932 million were up 40% on an as-adjusted basis. Non-U.S. staffing revenues increased 34% on an adjusted basis to $279 million. Currency exchange rate movements increased staffing revenues by $7 million.

The quarter had 64.4 billing days, compared with 64.3 in the year-ago quarter. At present, Robert Half operates 321 staffing locations worldwide, with 85 locations situated in 17 countries outside the United States.

Protiviti revenues came in at $501 million, up 55% on an as-adjusted basis. U.S. Protiviti revenues of $400 million increased 54% on an adjusted basis. Non-U.S. Protiviti revenues of $101 million increased 61% on an as-adjusted basis.

Margins Expand

Adjusted gross profit in the quarter was $725.1 million, up 54% year over year. Adjusted gross profit margin of 42.3% improved 270 basis points year over year.

Key Balance Sheet and Cash Flow Figures

Robert Half ended the quarter with a cash and cash equivalent balance of $633.7 million compared with $543 million witnessed at the end of the previous quarter. The company generated $225 million of cash from operations while capital expenditures were $8.7 million. It paid out $42 million in dividends and repurchased shares worth $75 million in the reported period.

Q3 Guidance

For the fourth quarter of 2021, Robert Half expects revenues in the range of $1.655 billion to $1.735 billion, the midpoint ($1.695 billion) of which is higher than the current Zacks Consensus Estimate of $1.66 billion.

EPS is expected between $1.37 and $1.47, higher than the Zacks Consensus Estimate of $1.35.

Currently, Robert Half carries a Zacks Rank #3 (Hold).

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 third-quarter 2021 results. Adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined 1.1% on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year.

IQVIA Holdings (IQV - Free Report) reported impressive third-quarter 2021 results with earnings per share of $2.17 beating the consensus mark by 1.9% and improving 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year.

Omnicom (OMC - Free Report) reported third-quarter 2021 adjusted earnings of $1.65 per share that beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.