Robert Half's (RHI) Q1 Earnings Beat Estimates, Decline Y/Y
Robert Half International Inc. RHI reported impressive first-quarter 2023 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
Quarterly earnings of $1.14 per share beat the consensus mark by 1.8% but declined 25% year over year. The bottom-line surpassed our estimate by 3.6%.
Revenues of $1.72 billion beat the consensus mark by a slight margin but decreased 5.4% year over year. The top line surpassed our estimate by a slight margin.
The company’s shares have declined 29.4% over the past year, compared with an 18.1% decline in the industry it belongs to.
Robert Half International Inc. Price, Consensus and EPS Surprise
Robert Half International Inc. price-consensus-eps-surprise-chart | Robert Half International Inc. Quote
Robert Half International Inc. Price, Consensus and EPS Surprise
Talent Solutions Revenues Down, Protiviti Up
Talent Solutions’ revenues of $1.22 billion decreased 9% year over year on an as-adjusted basis. U.S. Talent Solutions’ revenues of $944 million were down 11% year over year. Non-U.S. Talent Solutions revenues decreased 3% year over year on an adjusted basis to $278 million.
Protiviti revenues came in at $494 million, up 4% year over year on an as-adjusted basis. U.S. Protiviti revenues of $397 million increased 6% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $97 million declined 1% year over year on an as-adjusted basis.
The quarter had 63.3 billing days compared with 62.4 billing days in the year-ago quarter. At present, Robert Half operates 317 talent solutions locations worldwide, with 86 locations situated in 18 countries outside the United States.
Currency exchange rate movements decreased total revenues by $21 million, Talent Solutions revenues by $15 million and Protiviti revenues by $6 million.
Margins Contract
Adjusted gross profit in the quarter was $689.7 million, down 10.6% year over year. The adjusted gross profit margin of 40.2% declined 230 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 $547.7 million compared with $658.6 million witnessed at the previous-quarter end. The company generated $66 million of cash from operations while capital expenditures were $9.4 million. It paid out $54 million in dividends and repurchased shares worth $38 million in the reported period.
Q2 Guidance
For the second quarter of 2023, Robert Half expects revenues of $1.655-$1.735 billion, the midpoint ($1.695 billion) of which is higher than the current Zacks Consensus Estimate of $1.68 billion.
EPS is expected between $1.09 and $1.19, the midpoint ($1.14) of which is lower than the current Zacks Consensus Estimate of $1.16.
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.
Recent Earnings Snapshots of Some Service Providers
Omnicom OMC reported better-than-expected first-quarter 2023 results.
OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Equifax EFX also reported a beat on both counts in its first-quarter 2023 results.
EFX’s adjusted earnings came in at $1.43, beating the consensus mark by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% year over year.
ManpowerGroup MAN reported lower-than-expected first-quarter 2023 results.
MAN’s adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year.
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