We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Robert Half (RHI) Down 0.2% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for Robert Half (RHI - Free Report) . Shares have lost about 0.2% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important catalysts.
Robert Half Q2 Earnings Fails to Beat Estimates
Robert Half reported lower-than-expected second-quarter 2023 results.
Quarterly earnings of $1 per share missed the consensus mark by 11.5% and declined 37.5% year over year. Revenues of $1.64 billion beat the consensus mark by 2.8% and decreased 12% year over year.
Talent Solutions Revenues Down, Protiviti Falls
Talent Solutions’ revenues of $1.5 billion decreased 16% year over year on an as-adjusted basis. U.S. Talent Solutions’ revenues of $885 million were down 17% year over year. Non-U.S. Talent Solutions revenues decreased 9% year over year on an adjusted basis to $263 million.
Protiviti revenues came in at $491 million, down 1% year over year on an as-adjusted basis. U.S. Protiviti revenues of $386 million declined 2% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $105 million increased 4% year over year on an as-adjusted basis.
The quarter had 63.3 billing days compared with 63.4 billing days in the year-ago quarter. At present, Robert Half operates 318 talent solutions locations worldwide, with 87 locations situated in 18 countries outside the United States. Currency exchange rate movements decreased total revenues by $3 million.
Margins Contract
Adjusted gross profit in the quarter was $665.4 million, down 17.2% year over year. This compares with our expectation of an adjusted gross profit of $688 million, down 14.4% year over year.
The adjusted gross profit margin of 40.6% declined 260 basis points year over year. This compares with our expectation of an adjusted gross profit margin of 41%, down 220 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 $722.7 million compared with the $547.7 million witnessed at the previous-quarter end. The company generated $281 million of cash from operations while capital expenditures were $9.7 million. It paid out $51 million in dividends and repurchased shares worth $45 million in the reported period.
Q3 Guidance
For the third quarter of 2023, Robert Half expects revenues of $1.48-$1.58 billion. EPS is expected between 76 cents and 90 cents.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -24.81% due to these changes.
VGM Scores
Currently, Robert Half has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Robert Half has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Robert Half (RHI) Down 0.2% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Robert Half (RHI - Free Report) . Shares have lost about 0.2% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important catalysts.
Robert Half Q2 Earnings Fails to Beat Estimates
Robert Half reported lower-than-expected second-quarter 2023 results.
Quarterly earnings of $1 per share missed the consensus mark by 11.5% and declined 37.5% year over year. Revenues of $1.64 billion beat the consensus mark by 2.8% and decreased 12% year over year.
Talent Solutions Revenues Down, Protiviti Falls
Talent Solutions’ revenues of $1.5 billion decreased 16% year over year on an as-adjusted basis. U.S. Talent Solutions’ revenues of $885 million were down 17% year over year. Non-U.S. Talent Solutions revenues decreased 9% year over year on an adjusted basis to $263 million.
Protiviti revenues came in at $491 million, down 1% year over year on an as-adjusted basis. U.S. Protiviti revenues of $386 million declined 2% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $105 million increased 4% year over year on an as-adjusted basis.
The quarter had 63.3 billing days compared with 63.4 billing days in the year-ago quarter. At present, Robert Half operates 318 talent solutions locations worldwide, with 87 locations situated in 18 countries outside the United States. Currency exchange rate movements decreased total revenues by $3 million.
Margins Contract
Adjusted gross profit in the quarter was $665.4 million, down 17.2% year over year. This compares with our expectation of an adjusted gross profit of $688 million, down 14.4% year over year.
The adjusted gross profit margin of 40.6% declined 260 basis points year over year. This compares with our expectation of an adjusted gross profit margin of 41%, down 220 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 $722.7 million compared with the $547.7 million witnessed at the previous-quarter end. The company generated $281 million of cash from operations while capital expenditures were $9.7 million. It paid out $51 million in dividends and repurchased shares worth $45 million in the reported period.
Q3 Guidance
For the third quarter of 2023, Robert Half expects revenues of $1.48-$1.58 billion. EPS is expected between 76 cents and 90 cents.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -24.81% due to these changes.
VGM Scores
Currently, Robert Half has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Robert Half has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.