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What's in Store for Robert Half (RHI) This Earnings Season?

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Robert Half International Inc.’s (RHI - Free Report) shares have depreciated 31.5% year to date compared with the 36.2% decline of the industry it belongs to. The company is scheduled to report first-quarter 2020 results on Apr 23, after the bell.

Here’re the Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.5 billion, indicating growth of 2.3% year over year. The company has been witnessing momentum in its U.S. staffing and Protiviti operations, a trend that is most likely to have continued in the first quarter as well. Tight labor markets across the globe are expected to have kept demand for Robert Half’s professional staffing services in good shape during the quarter.

In fourth-quarter 2019, total revenues of $1.54 billion increased 3.8% year over year.

Robert Half International Inc. Revenue (TTM)

The consensus estimate for earnings stands at 81 cents, indicating a year-over-year decline of 12.9%. Rise in selling, general and administrative expenses due to negative leverage from the company’s non-U.S. staffing operations is expected to have strained the bottom line.

In fourth-quarter 2019, earnings of 98 cents per share increased 3.2% year over year.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Robert Half this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Robert Half has an Earnings ESP of -8.95% and currently carries a Zacks Rank #5.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on first-quarter 2020 earnings:

Spotify (SPOT - Free Report) has an Earnings ESP of +26.78% and currently holds a Zacks Rank of 3.

Advanced Disposal has an Earnings ESP of +16.67% and currently carries a Zacks Rank of 3.

Verisk Analytics (VRSK - Free Report) has an Earnings ESP of +2.43% and is a Zacks #3 Ranked stock.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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