It has been about a month since the last earnings report for Robert Half (RHI Quick QuoteRHI - Free Report) . Shares have lost about 9.5% in that time frame, underperforming 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 drivers.

Robert Half Q4 Earnings Missed Estimates

Robert Half International reported narrower-than-expected fourth-quarter 2024 results.

Quarterly earnings of 53 cents per share missed the consensus mark by 1.9% and declined 36.4% year over year. Revenues of $1.38 billion lagged the consensus mark marginally and decreased 6.2% year over year.

RHI's Talent Solutions Revenues Down, Protiviti Up

Talent Solutions’ revenues of $894 million decreased 11.4% year over year on an as-adjusted basis and came in below our estimate of $902.6 million. U.S. Talent Solutions’ revenues of $686 million were down 11% year over year. Non-U.S. Talent Solutions revenues also decreased 14% year over year on an adjusted basis to $208 million.

Protiviti revenues came in at $488 million, up 5% year over year on an as-adjusted basis and above our expectation of $481.5 million. The U.S. Protiviti revenues of $396 million increased 6% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $92 million remained flat year over year on an as-adjusted basis.

Currency exchange rate movements declined revenues by $4 million in the quarter. The quarter had 61.6 billing days compared with 61.1 billing days in the year-ago quarter.

RHI's Margins Contract

The adjusted gross profit in the quarter was $537.2 million, down 9.4% year over year. The adjusted gross profit margin of 38.9% 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 $537.6 million compared with $731.7 million in the fourth quarter of 2023. Operating cash in the quarter was $155 million, and capital expenditures were $14.3 million. RHI paid out $54 million in dividends and repurchased shares worth $77 million in the reported period.

Robert Half's 2025 Guidance

For the first quarter of 2025, Robert Half expects revenues in the band of $1.35-$1.45 billion. EPS is expected between 31 cents and 41 cents.

Moreover, the company expects 61.9 billing days in the first quarter of 2025. For the remaining three quarters of 2025, RHI expects 63.2, 64.2 and 61.4 for a total of 250.7 billing days for the year.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted -24.97% due to these changes.

VGM Scores

At this time, 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 second quintile 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 #4 (Sell). We expect a below average return from the stock in the next few months.