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Robert Half International Stock Plunges 6.1% Since Q2 Earnings Beat
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Key Takeaways
Q2 EPS fell 37.9% YoY to $0.41 but beat estimates by 2.5%; revenues declined 7% to $1.37B.
Talent Solutions revenues dropped 11.3%, while Protiviti rose 2% but missed internal projections.
Gross margin declined 210 bps to 39.1%; Q3 EPS guidance of $0.37-$0.47 trails the consensus estimate.
Robert Half International Inc. (RHI - Free Report) reported impressive second-quarter fiscal 2026 results, wherein earnings and revenues beat the Zacks Consensus Estimate but failed to impress the market.
The stock has moved 6.1% south since the earnings release on July 23.
Quarterly earnings of 41 cents per share beat the consensus mark by 2.5% but declined 37.9% year over year. Revenues of $1.37 billion outpaced the consensus mark by 1.4% but decreased 7% year over year.
Robert Half Inc. Price, Consensus and EPS Surprise
The company’s shares have depreciated 37.2% over the past year compared with the Staffing Firms industry’s 28.4% decline and the 17.4% rise of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
RHI’s Talent Solutions Revenues Down, Protiviti Up
Talent Solutions’ revenues of $874.521 million decreased 11.3% year over year on an as-adjusted basis and came in below our estimate of $914.2 million. U.S. Talent Solutions’ revenues were $668 million, down 11% year over year. Non-U.S. Talent Solutions revenues also declined 13% year over year on an adjusted basis to $207 million.
Protiviti revenues came in at $495.2 million, up 2% year over year on an as-adjusted basis but below our expectation of $503.1 million. The U.S. Protiviti revenues of $396 million decreased 1% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $99 million were up 11% year over year on an as-adjusted basis.
Currency exchange rate movements during the second quarter increased year-over-year total revenues by $8 million, and $4 million for both talent solutions and Protiviti. The quarter had 63.2 billing days compared with 63.5 billing days in the year-ago quarter.
RHI’s Margins Contract
The adjusted gross profit in the quarter was $522.3 million, down 9.9% year over year. The adjusted gross profit margin of 39.1% declined 210 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 $380.6 million compared with $547.4 million in the second quarter of 2024. Operating cash in the quarter was $119 million, and capital expenditures were $15.2 million. RHI paid out $59 million in dividends.
Robert Half’s Q3 and 2025 Guidance
For the third quarter of 2025, Robert Half expects revenues in the band of $1.31-$1.41 billion. The midpoint ($1.36 billion) of the guided range is just above the current Zacks Consensus Estimate of $1.35 billion.
EPS is expected between 37 cents and 47 cents. The Zacks Consensus Estimate is currently pegged higher at 52 cents.
Moreover, the company anticipates 64.2 billing days compared to 64.1 billing days during the third quarter of 2024. Capital expenditures, including capitalized cloud computing costs, are projected to range between $15 million and $25 million during the same period.
For 2025, capital expenditures and capitalized cloud computing costs are expected to be $75 million to $90 million, with $15 million to $25 million in the third quarter. The estimated full-year tax rate is projected between 31% and 35%.
The company currently carries a Zacks Rank #4 (Sell).
Fiserv, Inc. (FI - Free Report) reported mixed second-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.
FI’s adjusted earnings per share of $2.47 beat the consensus mark by 2.5% and rose 16% year over year. Adjusted revenues of $5.2 billion missed the consensus estimate by a slight margin but gained 1.7% on a year-over-year basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported impressive second-quarter 2025 results. Both earnings and revenues beat the Zacks Consensus Estimate.
IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2.2 billion.
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Robert Half International Stock Plunges 6.1% Since Q2 Earnings Beat
Key Takeaways
Robert Half International Inc. (RHI - Free Report) reported impressive second-quarter fiscal 2026 results, wherein earnings and revenues beat the Zacks Consensus Estimate but failed to impress the market.
The stock has moved 6.1% south since the earnings release on July 23.
Quarterly earnings of 41 cents per share beat the consensus mark by 2.5% but declined 37.9% year over year. Revenues of $1.37 billion outpaced the consensus mark by 1.4% but decreased 7% year over year.
Robert Half Inc. Price, Consensus and EPS Surprise
Robert Half Inc. price-consensus-eps-surprise-chart | Robert Half Inc. Quote
The company’s shares have depreciated 37.2% over the past year compared with the Staffing Firms industry’s 28.4% decline and the 17.4% rise of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
RHI’s Talent Solutions Revenues Down, Protiviti Up
Talent Solutions’ revenues of $874.521 million decreased 11.3% year over year on an as-adjusted basis and came in below our estimate of $914.2 million. U.S. Talent Solutions’ revenues were $668 million, down 11% year over year. Non-U.S. Talent Solutions revenues also declined 13% year over year on an adjusted basis to $207 million.
Protiviti revenues came in at $495.2 million, up 2% year over year on an as-adjusted basis but below our expectation of $503.1 million. The U.S. Protiviti revenues of $396 million decreased 1% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $99 million were up 11% year over year on an as-adjusted basis.
Currency exchange rate movements during the second quarter increased year-over-year total revenues by $8 million, and $4 million for both talent solutions and Protiviti. The quarter had 63.2 billing days compared with 63.5 billing days in the year-ago quarter.
RHI’s Margins Contract
The adjusted gross profit in the quarter was $522.3 million, down 9.9% year over year. The adjusted gross profit margin of 39.1% declined 210 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 $380.6 million compared with $547.4 million in the second quarter of 2024. Operating cash in the quarter was $119 million, and capital expenditures were $15.2 million. RHI paid out $59 million in dividends.
Robert Half’s Q3 and 2025 Guidance
For the third quarter of 2025, Robert Half expects revenues in the band of $1.31-$1.41 billion. The midpoint ($1.36 billion) of the guided range is just above the current Zacks Consensus Estimate of $1.35 billion.
EPS is expected between 37 cents and 47 cents. The Zacks Consensus Estimate is currently pegged higher at 52 cents.
Moreover, the company anticipates 64.2 billing days compared to 64.1 billing days during the third quarter of 2024. Capital expenditures, including capitalized cloud computing costs, are projected to range between $15 million and $25 million during the same period.
For 2025, capital expenditures and capitalized cloud computing costs are expected to be $75 million to $90 million, with $15 million to $25 million in the third quarter. The estimated full-year tax rate is projected between 31% and 35%.
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Fiserv, Inc. (FI - Free Report) reported mixed second-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.
FI’s adjusted earnings per share of $2.47 beat the consensus mark by 2.5% and rose 16% year over year. Adjusted revenues of $5.2 billion missed the consensus estimate by a slight margin but gained 1.7% on a year-over-year basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported impressive second-quarter 2025 results. Both earnings and revenues beat the Zacks Consensus Estimate.
IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2.2 billion.