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Robert Half's (RHI) Earnings Beat in Q1, Q2 Guidance Rosy

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Robert Half International Inc. (RHI - Free Report) delivered impressive first-quarter 2022 results, with earnings and revenues beating the Zacks Consensus Estimate.

Quarterly earnings of $1.52 per share beat the consensus mark by 3.4% and rose 55.1% year over year. Revenues of $1.81 billion surpassed the consensus mark marginally and increased 29.8% year over year on a reported basis and 30% on an as-adjusted basis.

Shares of RHI have appreciated 24.8% in the past year compared with 3.2% growth of the industry it belongs to.

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Talent Solution and Protiviti Revenues Rise

Previously, what was referred to as staffing operations is now referred to as talent solutions. However, there is no change in the underlying business operations or organization.

Total talent solutions revenues came in at $1.34 billion and increased 35% on a year-over-year basis. U.S. talent solutions revenues were $1.04 billion, up 38% from the prior-year figure. Non-U.S. talent solutions revenues were $297 million, up 28% year over year on an as-adjusted basis.

Total contract talent solutions revenues came in at $1,155.7 million and surged 30% on a year-over-year basis.

Permanent placement talent solutions revenues came in at $186.8 million and surged 67.2% on a year-over-year basis.

Currency exchange rate movements during the first quarter had the effect of decreasing reported year-over-year talent solutions revenues by $13 million. This negatively impacted the year-over-year reported talent solutions revenue growth rate by 1.3 percentage points.

The quarter had 62.4 billing days compared with 62.3 reported in first-quarter 2021. At present, Robert Half operates 317 talent solutions locations worldwide with 83 sites in 17 countries outside the United States.

Protiviti revenues summed $472.3 million, up 18.8% on an as-adjusted basis. U.S. Protiviti revenues of increased 20% on an adjusted basis. Non-U.S. Protiviti revenues increased 32% on an as-adjusted basis.

Margins Expand

Adjusted gross profit in the quarter was $771.8 million, up 37.4% year over year. The adjusted gross profit margin of 42.5% improved 238 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 $550.3 million compared with $619 million witnessed at the end of the previous quarter.

RHI generated $69 million of cash from operations while capital expenditures were $15 million. Robert Half paid out $47 million of dividends and repurchased shares worth $55 million in the reported quarter.

Q2 Guidance

For second-quarter 2022, Robert Half expects revenues in the range of $1.855-$1.935 billion, the midpoint ($1.895 billion) being higher than the current Zacks Consensus Estimate of $1.85 billion.

Earnings per share (EPS) are expected between $1.53 and $1.63, the midpoint of $1.58 being higher than the Zacks Consensus Estimate of $1.57.

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.

Earnings Snapshots

Within the broader Business Services sector, ManpowerGroup Inc. (MAN - Free Report) , Omnicom Group Inc. (OMC - Free Report) and Equifax Inc. (EFX - Free Report) recently reported first-quarter 2022 results.

ManpowerGroup reported impressive first-quarter 2022 results, with both earnings and revenues beating the Zacks Consensus Estimate. Quarterly adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year. Revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year on a reported basis and 9.8% on a constant-currency (cc) basis.

Omnicom reported impressive first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate. Earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.

Equifax reported better-than-expected first-quarter 2022 results. Adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. Revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis.

 

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