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Robert Half's (RHI) Q3 Earnings Miss Estimates, Flat Y/Y
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Robert Half International Inc. (RHI - Free Report) reported lower-than-expected third-quarter 2022 results.
Quarterly earnings of $1.53 per share missed the consensus mark by 7.3% and were flat year over year. Revenues of $1.83 billion missed the consensus mark by 4% but increased 7.1% year over year on a reported basis and 20% on an as-adjusted basis.
The company’s shares have depreciated 27.8% over the past year compared with the 48.2% decline of the industry it belongs to.
Talent Solutionsand Protiviti Revenues Rise
Talent solutions’ revenues of $1.32 billion increased 12% year over year on an as-adjusted basis. U.S. Talent Solutions’ revenues of $1.05 billion were up 13% year over year. Non-U.S. Talent Solutions revenues increased 10% year over year on an adjusted basis to $273 million.
Protiviti revenues came in at $511 million, up 5% year over year on an as-adjusted basis. The U.S. Protiviti revenues of $416 million increased 4% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $95 million increased 7% year over year on an as-adjusted basis.
The quarter had 64.3 billing days compared with 64.4 billing days in the year-ago quarter. At present, Robert Half operates 316 talent solutions locations worldwide, with 85 locations situated in 17 countries outside the United States.
Currency exchange rate movements decreased total revenues by $45 million, Talent Solutions revenues by $32 million and Protiviti revenues by $13 million.
Margins Expand
Adjusted gross profits in the quarter were $784.9 million, up 8.3% year over year. Adjusted gross profit margin of 42.8% improved 50 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 $593.3 million compared with $590.9 million witnessed at the previous-quarter end. The company generated $179 million of cash from operations, while capital expenditures were $13.4 million. It paid out $46 million in dividends and repurchased shares worth $86 million in the reported period.
Robert Half International Inc. Price, Consensus and EPS Surprise
For the fourth quarter of 2022, Robert Half expects revenues in the range of $1.695-$1.775 billion, lower than the current Zacks Consensus Estimate of $1.86 billion.
EPS is expected between $1.31 and $1.41, lower than the current Zacks Consensus Estimate of $1.58 billion.
Currently, Robert Half carries a Zacks Rank #4 (Sell).
Recent Performance of a Couple of Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the Zacks Consensus Estimates.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
Omnicom Group (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
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Robert Half's (RHI) Q3 Earnings Miss Estimates, Flat Y/Y
Robert Half International Inc. (RHI - Free Report) reported lower-than-expected third-quarter 2022 results.
Quarterly earnings of $1.53 per share missed the consensus mark by 7.3% and were flat year over year. Revenues of $1.83 billion missed the consensus mark by 4% but increased 7.1% year over year on a reported basis and 20% on an as-adjusted basis.
The company’s shares have depreciated 27.8% over the past year compared with the 48.2% decline of the industry it belongs to.
Talent Solutions and Protiviti Revenues Rise
Talent solutions’ revenues of $1.32 billion increased 12% year over year on an as-adjusted basis. U.S. Talent Solutions’ revenues of $1.05 billion were up 13% year over year. Non-U.S. Talent Solutions revenues increased 10% year over year on an adjusted basis to $273 million.
Protiviti revenues came in at $511 million, up 5% year over year on an as-adjusted basis. The U.S. Protiviti revenues of $416 million increased 4% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $95 million increased 7% year over year on an as-adjusted basis.
The quarter had 64.3 billing days compared with 64.4 billing days in the year-ago quarter. At present, Robert Half operates 316 talent solutions locations worldwide, with 85 locations situated in 17 countries outside the United States.
Currency exchange rate movements decreased total revenues by $45 million, Talent Solutions revenues by $32 million and Protiviti revenues by $13 million.
Margins Expand
Adjusted gross profits in the quarter were $784.9 million, up 8.3% year over year. Adjusted gross profit margin of 42.8% improved 50 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 $593.3 million compared with $590.9 million witnessed at the previous-quarter end. The company generated $179 million of cash from operations, while capital expenditures were $13.4 million. It paid out $46 million in dividends and repurchased shares worth $86 million in the reported period.
Robert Half International Inc. Price, Consensus and EPS Surprise
Robert Half International Inc. price-consensus-eps-surprise-chart | Robert Half International Inc. Quote
Q4 Guidance
EPS is expected between $1.31 and $1.41, lower than the current Zacks Consensus Estimate of $1.58 billion.
Currently, Robert Half carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of a Couple of Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the Zacks Consensus Estimates.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
Omnicom Group (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.