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Robert Half (RHI) Down 12.6% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Robert Half (RHI - Free Report) . Shares have lost about 12.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Robert Half due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Robert Half Q1 Earnings and Revenues Surpass Estimates

Robert Half 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.

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. Earnings per share (EPS) are expected between $1.53 and $1.63.


How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

Currently, Robert Half has a strong Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.


Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Robert Half has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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