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Robert Half's (RHI) Q3 Earnings Beat Estimates, Decline Y/Y
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Robert Half International Inc. (RHI - Free Report) reported better-than-expected third-quarter 2023 results.
Quarterly earnings of 90 cents per share beat the consensus mark by 12.5% but declined 41.2% year over year. Revenues of $1.56 billion beat the consensus mark by 1.9% but decreased 14.7% year over year.
The company’s shares have declined 3.4% in the past year compared with the 8.7% fall of the industry it belongs to.
Talent Solutions Revenues Down, Protiviti Fall
Talent Solutions’ revenues of $1.1 billion decreased 17% year over year on an as-adjusted basis. U.S. Talent Solutions’ revenues of $823 million were down 20% year over year. Non-U.S. Talent Solutions revenues decreased 7% year over year on an adjusted basis to $260 million.
Robert Half Inc. Price, Consensus and EPS Surprise
Protiviti revenues came in at $481 million, down 5% year over year on an as-adjusted basis. U.S. Protiviti revenues of $386 million declined 6% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $95 million declined 2% year over year on an as-adjusted basis.
The quarter had 63.1 billing days compared with 64.3 billing days in the year-ago quarter. At present, Robert Half operates 319 talent solutions locations worldwide, with 89 locations situated in 18 countries outside the United States. Currency exchange rate movements increased total revenues by $13 million year over year.
Margins Contract
Adjusted gross profit in the quarter was $640.9 million, down 18.6% year over year. This compares with our expectation of an adjusted gross profit of $618.9 million, down 21.1% year over year.
The adjusted gross profit margin of 40.8% declined 200 basis points year over year compared with our expectation of an adjusted gross profit margin of 40.4%, down 240 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 $729.5 million compared with the $722.7 million witnessed at the previous quarter end. The company generated $176 million of cash from operations, while capital expenditures were $34.1 million. It paid out $51 million in dividends and repurchased shares worth $90 million in the reported period.
Q4 Guidance
For the fourth quarter of 2023, Robert Half expects revenues to be $1.415-$1.515 billion, the midpoint ($1.47 billion) of which is higher than the current Zacks Consensus Estimate of $1.45 billion.
EPS is expected between 75 cents and 89 cents, the midpoint (82 cents) of which is higher than the current Zacks Consensus Estimate of 76 cents.
Currently, Robert Half carries a Zacks Rank #3 (Hold).
The Interpublic Group of Companies, Inc.’s (IPG - Free Report) third-quarter 2023 earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings were 70 cents per share, which lagged the consensus estimate by 6.7% but increased 11.1% on a year-over-year basis. Net revenues of $2.31 billion missed the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1% but increasing 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7% and increased 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. (FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
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Robert Half's (RHI) Q3 Earnings Beat Estimates, Decline Y/Y
Robert Half International Inc. (RHI - Free Report) reported better-than-expected third-quarter 2023 results.
Quarterly earnings of 90 cents per share beat the consensus mark by 12.5% but declined 41.2% year over year. Revenues of $1.56 billion beat the consensus mark by 1.9% but decreased 14.7% year over year.
The company’s shares have declined 3.4% in the past year compared with the 8.7% fall of the industry it belongs to.
Talent Solutions Revenues Down, Protiviti Fall
Talent Solutions’ revenues of $1.1 billion decreased 17% year over year on an as-adjusted basis. U.S. Talent Solutions’ revenues of $823 million were down 20% year over year. Non-U.S. Talent Solutions revenues decreased 7% year over year on an adjusted basis to $260 million.
Robert Half Inc. Price, Consensus and EPS Surprise
Robert Half Inc. price-consensus-eps-surprise-chart | Robert Half Inc. Quote
Protiviti revenues came in at $481 million, down 5% year over year on an as-adjusted basis. U.S. Protiviti revenues of $386 million declined 6% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $95 million declined 2% year over year on an as-adjusted basis.
The quarter had 63.1 billing days compared with 64.3 billing days in the year-ago quarter. At present, Robert Half operates 319 talent solutions locations worldwide, with 89 locations situated in 18 countries outside the United States. Currency exchange rate movements increased total revenues by $13 million year over year.
Margins Contract
Adjusted gross profit in the quarter was $640.9 million, down 18.6% year over year. This compares with our expectation of an adjusted gross profit of $618.9 million, down 21.1% year over year.
The adjusted gross profit margin of 40.8% declined 200 basis points year over year compared with our expectation of an adjusted gross profit margin of 40.4%, down 240 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 $729.5 million compared with the $722.7 million witnessed at the previous quarter end. The company generated $176 million of cash from operations, while capital expenditures were $34.1 million. It paid out $51 million in dividends and repurchased shares worth $90 million in the reported period.
Q4 Guidance
For the fourth quarter of 2023, Robert Half expects revenues to be $1.415-$1.515 billion, the midpoint ($1.47 billion) of which is higher than the current Zacks Consensus Estimate of $1.45 billion.
EPS is expected between 75 cents and 89 cents, the midpoint (82 cents) of which is higher than the current Zacks Consensus Estimate of 76 cents.
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.
Recent Earnings Snapshots
The Interpublic Group of Companies, Inc.’s (IPG - Free Report) third-quarter 2023 earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings were 70 cents per share, which lagged the consensus estimate by 6.7% but increased 11.1% on a year-over-year basis. Net revenues of $2.31 billion missed the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1% but increasing 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7% and increased 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. (FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.