Robert Half's (RHI) Q2 Earnings Miss Estimates, Decline Y/Y
Robert Half International Inc. RHI reported lower-than-expected second-quarter 2023 results.
Quarterly earnings of $1 per share missed the consensus mark by 11.5% and declined 37.5% year over year. Revenues of $1.64 billion beat the consensus mark by 2.8% and decreased 12% year over year.
The company’s shares have gained 2.9% in the past month compared with the 6% rise of the industry it belongs to.
Talent Solutions Revenues Down, Protiviti Falls
Talent Solutions’ revenues of $1.5 billion decreased 16% year over year on an as-adjusted basis. U.S. Talent Solutions’ revenues of $885 million were down 17% year over year. Non-U.S. Talent Solutions revenues decreased 9% year over year on an adjusted basis to $263 million.
Protiviti revenues came in at $491 million, down 1% year over year on an as-adjusted basis. U.S. Protiviti revenues of $386 million declined 2% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $105 million increased 4% year over year on an as-adjusted basis.
The quarter had 63.3 billing days compared with 63.4 billing days in the year-ago quarter. At present, Robert Half operates 318 talent solutions locations worldwide, with 87 locations situated in 18 countries outside the United States. Currency exchange rate movements decreased total revenues by $3 million.
Robert Half Inc. Price, Consensus and EPS Surprise
Robert Half Inc. price-consensus-eps-surprise-chart | Robert Half Inc. Quote
Margins Contract
Adjusted gross profit in the quarter was $665.4 million, down 17.2% year over year. This compares with our expectation of an adjusted gross profit of $688 million, down 14.4% year over year.
The adjusted gross profit margin of 40.6% declined 260 basis points year over year. This compares with our expectation of an adjusted gross profit margin of 41%, down 220 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 $722.7 million compared with the $547.7 million witnessed at the previous-quarter end. The company generated $281 million of cash from operations while capital expenditures were $9.7 million. It paid out $51 million in dividends and repurchased shares worth $45 million in the reported period.
Q3 Guidance
For the third quarter of 2023, Robert Half expects revenues of $1.48-$1.58 billion, lower than the current Zacks Consensus Estimate of $1.63 billion.
EPS is expected between 76 cents and 90 cents, lower than the current Zacks Consensus Estimate of $1.06.
Currently, Robert Half carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Omnicom OMC reported mixed second-quarter 2023 results, wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but increased 1.2% year over year.
Equifax EFX reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.
Interpublic’s IPG second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Omnicom Group Inc. (OMC) : Free Stock Analysis Report
Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report
Equifax, Inc. (EFX) : Free Stock Analysis Report
Robert Half Inc. (RHI) : Free Stock Analysis Report
