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Here's Why Investors Should Retain Robert Half (RHI) Now
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Robert Half International Inc. (RHI - Free Report) is currently benefiting from strong liquidity, investor-friendly steps and its wholly-owned subsidiary Protiviti.
RHI earnings and revenues are anticipated to grow 18.1% and 15.4%, respectively, in 2022. RHI has a long-term earnings growth expectation of 3.6%.
Factors That Augur Well
Robert Half’s current ratio (a measure of liquidity) stood at 2.32 at the end of second-quarter 2022, higher than 1.76 recorded at the end of the prior quarter and the prior-year quarter’s 1.72. The gradually increasing current ratio bodes well for RHI. Moreover, a current ratio of more than 1.5 is usually considered good for a company. This may imply that the risk of default is less.
Robert Half offers risk consulting, internal audit and information technology consulting services through its wholly-owned subsidiary Protiviti, which is in great shape. Protiviti is firmly positioned in the market and currently boasts a healthy margin in double digits and grosses revenues. For the second quarter of 2022, Protiviti’s revenues came in at $497 million, up 11% year over year on an as-adjusted basis. The U.S. Protiviti revenues of $396 million increased 8% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $101 million rose 21% year over year on an as-adjusted basis.
Commitment to shareholder returns prompts Robert Half a reliable way for investors to compound wealth over the long term. In 2021, RHI paid out $170.6 million of dividends and repurchased shares worth $287.7 million. In 2020, Robert Half paid out $155.9 million of dividends and repurchased shares worth $159.1 million. Such shareholder-friendly initiatives not only instill investors’ confidence in the stock but also positively impact a company's earnings per share.
A Key Risk
Robert Half is witnessing an increase in expenses due to the rise in staff compensation costs and heavy investments in technology initiatives. Hence, RHI's bottom line is likely to remain under pressure going forward.
Some better-ranked stocks in the broader Zacks Business Services sector are Broadridge Financial Solutions, Inc. (BR - Free Report) , Genpact Limited (G - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .
Broadridge carries a Zacks Rank #2 at present. BR’s current-year earnings and revenue are expected to be at 9.4% and 7.5%, respectively.
Broadridge delivered a trailing four-quarter earnings surprise of 4.1%, on average.
Genpact carries a Zacks Rank #2 at present. G has a long-term earnings growth expectation of 12.2%.
Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.
Cross Country Healthcare carries a Zacks Rank of 2, currently. CCRN has a long-term earnings growth expectation of 10%.
CCRN delivered a trailing four-quarter earnings surprise of 26%, on average.
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Here's Why Investors Should Retain Robert Half (RHI) Now
Robert Half International Inc. (RHI - Free Report) is currently benefiting from strong liquidity, investor-friendly steps and its wholly-owned subsidiary Protiviti.
RHI earnings and revenues are anticipated to grow 18.1% and 15.4%, respectively, in 2022. RHI has a long-term earnings growth expectation of 3.6%.
Factors That Augur Well
Robert Half’s current ratio (a measure of liquidity) stood at 2.32 at the end of second-quarter 2022, higher than 1.76 recorded at the end of the prior quarter and the prior-year quarter’s 1.72. The gradually increasing current ratio bodes well for RHI. Moreover, a current ratio of more than 1.5 is usually considered good for a company. This may imply that the risk of default is less.
Robert Half offers risk consulting, internal audit and information technology consulting services through its wholly-owned subsidiary Protiviti, which is in great shape. Protiviti is firmly positioned in the market and currently boasts a healthy margin in double digits and grosses revenues. For the second quarter of 2022, Protiviti’s revenues came in at $497 million, up 11% year over year on an as-adjusted basis. The U.S. Protiviti revenues of $396 million increased 8% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $101 million rose 21% year over year on an as-adjusted basis.
Commitment to shareholder returns prompts Robert Half a reliable way for investors to compound wealth over the long term. In 2021, RHI paid out $170.6 million of dividends and repurchased shares worth $287.7 million. In 2020, Robert Half paid out $155.9 million of dividends and repurchased shares worth $159.1 million. Such shareholder-friendly initiatives not only instill investors’ confidence in the stock but also positively impact a company's earnings per share.
A Key Risk
Robert Half is witnessing an increase in expenses due to the rise in staff compensation costs and heavy investments in technology initiatives. Hence, RHI's bottom line is likely to remain under pressure going forward.
Zacks Rank and Stocks to Consider
Robert Half currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Broadridge Financial Solutions, Inc. (BR - Free Report) , Genpact Limited (G - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .
Broadridge carries a Zacks Rank #2 at present. BR’s current-year earnings and revenue are expected to be at 9.4% and 7.5%, respectively.
Broadridge delivered a trailing four-quarter earnings surprise of 4.1%, on average.
Genpact carries a Zacks Rank #2 at present. G has a long-term earnings growth expectation of 12.2%.
Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.
Cross Country Healthcare carries a Zacks Rank of 2, currently. CCRN has a long-term earnings growth expectation of 10%.
CCRN delivered a trailing four-quarter earnings surprise of 26%, on average.