Robert Half Posts Flat Revenues
January 30, 2017 – Robert Half International Inc. / (NYSE:RHI) posted full year revenues of $5.25 billion, down one percent from a year ago. That result failed to meet Wall Street forecasts. The Menlo Park, CA-based company posted fourth quarter revenues of $1.30 billion, an increase of three percent from the same period last year.
For the year, net income was $343 million, or $2.67 per share, compared to earnings of $358 million, or $2.69 per share. In the fourth quarter, Robert Half posted earnings of $78 million, or 61 cents per share. The results also did not meet Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 70 cents per share.
“Robert Half continued to benefit from a tightening job market and solid service demand domestically and in our non-U.S. markets during the fourth quarter,” said Harold M. Messmer Jr., chairman and CEO. “International staffing operations performed particularly well, and Protiviti also reported year-over-year revenue gains. Unlevered return on equity remained strong during the fourth quarter at 29 percent.”
Segment Details
Global Staffing Division: Global Staffing revenues declined 4.1 percent year-over-year. While international revenues inched up 0.5 percent, U.S. revenues declined 5.3 percent from the prior-year quarter. Currency also had a negative impact of 0.6 percent during the quarter. On a constant currency basis, global staffing declined 2.1 percent.
Protiviti: Protiviti revenues increased 3.2 percent, driven by 3.7 percent growth in U.S. revenues and 0.7 percent improvement in international revenues. Currency had a negative impact of 0.5 percent during the quarter. On a constant currency basis, Protiviti revenues rose 5.3 percent.
During the year, Protiviti, Robert Half’s global consulting division, was named one of Fortune’s 100 Best Workplaces for Millennials, which recognizes companies with extraordinary corporate cultures and talent growth initiatives. “At Protiviti, we’re deeply focused on ensuring our employees gain a strong sense of purpose and belonging to help them not only succeed in their careers at our firm, but also become woven into the tapestry that is our unique culture,” said Joseph Tarantino, Protiviti president and CEO.
Protiviti recently made two new additions: John Rao was named a managing director and leader of its insurance industry practice. He also serves as U.S. eastern region financial services leader. He previously served as managing director and U.S. financial services practice leader at Navigant Consulting and as senior vice president U.S. client services and chief administrative officer of the international business at MetLife; Scot Glover joined the San Francisco Bay Area office as a managing director in its internal audit and financial advisory practice where he focuses on serving clients in the technology and life sciences industries. He most recently served as a partner in the business advisory services at Grant Thornton LLP.
Robert Half shares have climbed slightly more than two percent since the beginning of the year, while the Standard & Poor’s 500 index has risen roughly three percent. In the final minutes of trading upon the release of its earnings, company shares hit $49.93, marking a rise of 14 percent in the last 12 months. The company forecasts first quarter revenue of $1.25 billion to $1.31 billion.
Contributed by Dale M. Zupsansky, Managing Editor, Hunt Scanlon Media
