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Robert Half's (RHI) Q4 Earnings Beat Estimates, Decline Y/Y
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Robert Half International Inc. (RHI - Free Report) reported better-than-expected fourth-quarter 2023 results.
Quarterly earnings of 83 cents per share beat the consensus mark by 1.2% but declined 39.4% year over year. Revenues of $1.5 billion beat the consensus mark by a slight margin but decreased 14.7% year over year.
The company’s shares have declined 4.9% in the past year compared with the 2.7% fall of the industry it belongs to.
Talent Solutions Revenues Down, Protiviti Fall
Talent Solutions' revenues of $1 billion decreased 18% year over year on an as-adjusted basis. U.S. Talent Solutions’ revenues of $764 million were down 21% year over year. Non-U.S. Talent Solutions revenues decreased 10% year over year on an adjusted basis to $245 million.
Protiviti revenues came in at $464 million, down 8% year over year on an as-adjusted basis. U.S. Protiviti revenues of $372 million declined 7% year over year on an as-adjusted basis. Non-U.S. Protiviti revenues of $92 million declined 9% year over year on an as-adjusted basis.
The quarter had 61.1 billing days compared with 61.2 billing days in the year-ago quarter. At present, Robert Half operates 313 talent solutions locations worldwide, with 89 locations situated in 18 countries outside the United States. Currency exchange rate movements increased total revenues by $11 million year over year.
Robert Half Inc. Price, Consensus and EPS Surprise
Gross profit in the quarter was $584.2 million, down 18.8% year over year. This compares with our expectation of a gross profit of $586 million, down 18.5% year over year.
The gross profit margin of 39.7% declined 197 basis points year over year compared with our expectation of an adjusted gross profit margin of 40%, down 160 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 $731.7 million compared with the $729.5 million witnessed at the previous quarter end. The company generated $115 million of cash from operations, while capital expenditures were $11.7 million. It paid out $51 million in dividends and repurchased shares worth $56 million in the reported period.
Q4 Guidance
For the first quarter of 2024, Robert Half expects revenues to be $1.44-$1.54 billion, the midpoint ($1.49 billion) of which is lower than the current Zacks Consensus Estimate of $1.5 billion.
EPS is expected between 54 cents and 68 cents, lower than the current Zacks Consensus Estimate of 76 cents.
Currently, Robert Half carries a Zacks Rank #3 (Hold).
Stocks to Consider
Investors interested in the broader Business Services sector can consider the following better-ranked stocks:
DocuSign (DOCU - Free Report) : The Zacks Consensus Estimate for DocuSign’s fiscal 2024 revenues indicates 9.2% growth from the year-ago figure, while earnings are expected to grow 41.4%. The company beat the consensus estimate in each of the past four quarters, the average surprise being 24.7%.
Broadridge Financial Solutions (BR - Free Report) : The Zacks Consensus Estimate for Broadridge’s fiscal 2024 revenues indicates 7.7% growth from the year-ago figure, while earnings are expected to grow 10.1%. The company beat the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 5.4%.
BR carries a Zacks Rank #2 (Buy), at present.
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Robert Half's (RHI) Q4 Earnings Beat Estimates, Decline Y/Y
Robert Half International Inc. (RHI - Free Report) reported better-than-expected fourth-quarter 2023 results.
Quarterly earnings of 83 cents per share beat the consensus mark by 1.2% but declined 39.4% year over year. Revenues of $1.5 billion beat the consensus mark by a slight margin but decreased 14.7% year over year.
The company’s shares have declined 4.9% in the past year compared with the 2.7% fall of the industry it belongs to.
Talent Solutions Revenues Down, Protiviti Fall
Talent Solutions' revenues of $1 billion decreased 18% year over year on an as-adjusted basis. U.S. Talent Solutions’ revenues of $764 million were down 21% year over year. Non-U.S. Talent Solutions revenues decreased 10% year over year on an adjusted basis to $245 million.
Protiviti revenues came in at $464 million, down 8% year over year on an as-adjusted basis. U.S. Protiviti revenues of $372 million declined 7% year over year on an as-adjusted basis. Non-U.S. Protiviti revenues of $92 million declined 9% year over year on an as-adjusted basis.
The quarter had 61.1 billing days compared with 61.2 billing days in the year-ago quarter. At present, Robert Half operates 313 talent solutions locations worldwide, with 89 locations situated in 18 countries outside the United States. Currency exchange rate movements increased total revenues by $11 million year over year.
Robert Half Inc. Price, Consensus and EPS Surprise
Robert Half Inc. price-consensus-eps-surprise-chart | Robert Half Inc. Quote
Margins Contract
Gross profit in the quarter was $584.2 million, down 18.8% year over year. This compares with our expectation of a gross profit of $586 million, down 18.5% year over year.
The gross profit margin of 39.7% declined 197 basis points year over year compared with our expectation of an adjusted gross profit margin of 40%, down 160 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 $731.7 million compared with the $729.5 million witnessed at the previous quarter end. The company generated $115 million of cash from operations, while capital expenditures were $11.7 million. It paid out $51 million in dividends and repurchased shares worth $56 million in the reported period.
Q4 Guidance
For the first quarter of 2024, Robert Half expects revenues to be $1.44-$1.54 billion, the midpoint ($1.49 billion) of which is lower than the current Zacks Consensus Estimate of $1.5 billion.
EPS is expected between 54 cents and 68 cents, lower than the current Zacks Consensus Estimate of 76 cents.
Currently, Robert Half carries a Zacks Rank #3 (Hold).
Stocks to Consider
Investors interested in the broader Business Services sector can consider the following better-ranked stocks:
DocuSign (DOCU - Free Report) : The Zacks Consensus Estimate for DocuSign’s fiscal 2024 revenues indicates 9.2% growth from the year-ago figure, while earnings are expected to grow 41.4%. The company beat the consensus estimate in each of the past four quarters, the average surprise being 24.7%.
DOCU currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Broadridge Financial Solutions (BR - Free Report) : The Zacks Consensus Estimate for Broadridge’s fiscal 2024 revenues indicates 7.7% growth from the year-ago figure, while earnings are expected to grow 10.1%. The company beat the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 5.4%.
BR carries a Zacks Rank #2 (Buy), at present.