Robert Half's (RHI) Q2 Earnings Beat Estimates, Increase Y/Y
Robert Half International Inc. RHI reported mixed second-quarter 2022 results, with its earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly earnings of $1.6 per share beat the consensus mark by 0.6% and were up 20.3% year over year. Revenues of $1.86 billion missed the consensus mark by 1.8% but increased 17.9% year over year on a reported basis and 20% on an as-adjusted basis.
The company’s shares have depreciated 17.7% over the past year compared with a 12.6% decline in the industry it belongs to.
Talent Solutions and Protiviti Revenues Rise
Talent solutions’ revenues of $1.37 billion increased 24% year over year on an as-adjusted basis. U.S. Talent Solutions’ revenues of $1.07 billion were up 25% year over year. Non-U.S. Talent Solutions revenues increased 20% year over year on an adjusted basis to $295 million.
Protiviti revenues came in at $497 million, up 11% year over year on an as-adjusted basis. The U.S. Protiviti revenues of $396 million increased 8% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $101 million increased 21% year over year on an as-adjusted basis.
The quarter had 63.4 billing days, the same as the year-ago quarter. At present, Robert Half operates 316 talent solutions locations worldwide, with 85 locations situated in 17 countries outside the United States.
Currency exchange rate movements decreased total revenues by $37 million, Talent Solutions revenues by $26 million and Protiviti revenues by $11 million.
Margins Expand
Adjusted gross profit in the quarter was $804.1 million, up 20.2% year over year. Adjusted gross profit margin of 43.2% improved 90 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 $590.9 million compared with $550.3 million witnessed at the previous-quarter end. The company generated $233 million of cash from operations while capital expenditures were $20.3 million. It paid out $49 million in dividends and repurchased shares worth $79 million in the reported period.
Q3 Guidance
For the third quarter of 2022, Robert Half expects revenues of $1.87-$1.95 billion, the midpoint ($1.91 billion) of which is higher than the current Zacks Consensus Estimate of $1.89 billion.
EPS is expected between $1.6 and $1.7, the midpoint ($1.65) of which is higher than the current Zacks Consensus Estimate of $1.64 billion.
Currently, Robert Half carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Robert Half International Inc. Price, Consensus and EPS Surprise
Robert Half International Inc. price-consensus-eps-surprise-chart | Robert Half International Inc. Quote
Recent Performance of Some Other Business Services Companies
Equifax EFX reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings IQV reported solid second-quarter 2022 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group OMC reported impressive second-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.
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