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Robert Half's Q3 Earnings Surpass Estimates, Decline Y/Y

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Robert Half International Inc. (RHI - Free Report) reported better-than-expected third-quarter 2024 results.

Quarterly earnings of 64 cents per share beat the consensus mark by 1.6% but declined 28.9% year over year. Revenues of $1.47 billion beat the consensus mark by 1.7% but decreased 6.3% year over year.

The company’s shares have depreciated 25.3% year to date compared with the 18.8% decline of the industry.

Robert Half Inc. Price, Consensus and EPS Surprise

Robert Half Inc. Price, Consensus and EPS Surprise

Robert Half Inc. price-consensus-eps-surprise-chart | Robert Half Inc. Quote

RHI’s Talent Solutions Revenues Down, Protiviti Up

Talent Solutions’ revenues of $954 million decreased 13% year over year on an as-adjusted basis and came in above our estimate of $947.9 million. U.S. Talent Solutions’ revenues of $725 million were down 13% year over year. Non-U.S. Talent Solutions revenues also decreased 13% year over year on an adjusted basis to $229 million.

Protiviti revenues came in at $511 million, up 5% year over year on an as-adjusted basis and above our expectation of $490.2 million. The U.S. Protiviti revenues of $411 million increased 8% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $90 million declined 8% year over year on an as-adjusted basis.

Currency exchange rate movements had an insignificant impact on revenues in the quarter. The quarter had 64.1 billing days compared with 63.1 billing days in the year-ago quarter.

RHI’s Margins Contract

Adjusted gross profit in the quarter was $577.8 million, down 9.5% year over year. The adjusted gross profit margin of 39.4% declined 140 basis points year over year.

RHI’s Key Balance Sheet and Cash Flow Figures

Robert Half ended the quarter with a cash and cash equivalent balance of $570.5 million compared with $547.4 million witnessed at the previous quarter end. Operating cash in the quarter was $130 million and capital expenditures were $17.8 million. RHI paid out $54 million in dividends and repurchased shares worth $49 million in the reported period.

Robert Half’s Q4 Guidance

For the fourth quarter of 2024, Robert Half expects revenues of $1.34-$1.44 billion. The midpoint ($1.39 billion) of the guided range is below the current Zacks Consensus Estimate of $1.41 billion.

EPS is expected between 47 cents and 61 cents. The current Zacks Consensus Estimate is pegged at 61 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.

Results From Some Other Service Providers

Omnicom (OMC - Free Report) reported impressive third-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC’s earnings of $2 per share beat the consensus estimate by 3.1% and increased 9.1% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 2.3% and increased 8.5% year over year.

Equifax (EFX - Free Report) reported mixed third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.

EFX’s adjusted earnings were $1.8 per share, beating the Zacks Consensus Estimate by a slight margin and increasing by 5.1% from the year-ago quarter’s actual. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 9.3% from the year-ago quarter.


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