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Robert Half (RHI) Up 0.8% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Robert Half (RHI - Free Report) . Shares have added about 0.8% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Robert Half due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Robert Half Q4 Earnings Beat Estimates

Robert Half International 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.

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.

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. EPS is expected between 54 cents and 68 cents.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -20.66% due to these changes.

VGM Scores

Currently, Robert Half has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% 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.


Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Robert Half has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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