Robert Half Posts 11 Percent Revenue Increase
October 25, 2018 – Robert Half International Inc./(NYSE:RHI) posted third quarter revenues of $1.47 billion, up 11 percent from revenues of $1.32 billion during the same quarter last year. The results beat Wall Street expectations. Analysts surveyed by Zacks Investment Research had forecasted revenue of $1.46 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The Menlo Park, CA-based recruiting company recorded third quarter profits of $115.2 million, or 95 cents per share, compared to earnings of $84.7 million, or 68 cents per share, last year. This also beat Wall Street expectations, which forecasted earnings of 91 cents per share.
“All of our staffing divisions and Protiviti reported solid year-over-year revenue gains in the third quarter,” said Harold M. Messmer Jr., chairman and CEO of Robert Half. “Our permanent placement and Protiviti operations performed particularly well during the quarter.”
“Skills shortages persist globally, driving heightened demand for skilled talent, especially in the professional-level segments in which Robert Half specializes,” Mr. Messmer said. “Also buoying our business is the sustained optimism among small and midsize companies, particularly in the United States, which is leading to increased hiring activity by this key client base. Return on invested capital for the company was 41 percent during the third quarter.”
Segments
Third quarter staffing revenues were up 10 percent on an as-adjusted basis, comprised of U.S. staffing revenues of $920 million, up seven percent on a same-day basis and non-U.S. staffing revenues of $293 million, up 18 percent on an as-adjusted basis.
For Protiviti, third quarter global revenues were $253 million, with $200 million coming from business within the U.S. and $53 million from operations outside the country. Protiviti revenues were up 18 percent year-over-year on an as-adjusted basis. Third-quarter U.S. Protiviti revenues were up 17 percent from last year on a same-day basis, while non-U.S. revenues were up 20 percent on an as-adjusted basis.
Executive Recruiters Report Solid Gains in Latest Rankings
The executive search industry’s leading 50 players in the Americas once again surpassed $3 billion in revenues last year, according to industry newsletter ESR, in a market report to be released later this month by Hunt Scanlon Media.
During the quarter, Robert Half announced that its board of directors has approved a quarterly cash dividend of 28 cent per share.
Outlook
The momentum we’ve had in the last couple of quarters continues into the fourth,” said M. Keith Waddell, vice chairman of the board, president and chief financial officer. “We offer the following fourth quarter guidance. Revenues, $1.430 billion to $1.495 billion. Income per share 88 cents to 94 cents. The mid-point of our fourth quarter guidance implies year-over-year revenue growth of nine percent on a same-day as-adjusted basis which includes Protiviti and EPS growth of 40 percent.
Robert Half shares have increased 15 percent since the beginning of the year, while the Standard & Poor’s 500 index has increased 2.5 percent. In the final minutes of trading after the release of its numbers, shares hit $64.04, a climb of 26 percent in the last 12 months.
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Andrew W. Mitchell, Managing Editor – Hunt Scanlon Media
