Robert Half Posts 42 Percent Revenue Increase
July 23, 2021 – Robert Half International Inc./(NYSE:RHI) posted second quarter revenues of $1.581 billion, a 42.6 percent increase from the same period a year ago, surpassing the consensus mark by 6.52 percent. The company has topped consensus revenue estimates four times over the last four quarters. “We achieved record levels of revenues and earnings in the second quarter due to a broad-based, global acceleration in demand for our staffing and business consulting services,” said M. Keith Waddell, president and CEO of Robert Half. “We are particularly pleased with the strength of our permanent placement and Protiviti operations, which grew year-over-year revenues by 102 percent and 62 percent, respectively. Protiviti reached its 15th consecutive quarter of revenue gains with very strong growth in each of its solution areas. Return on invested capital for the company was 49 percent in the second quarter.”
International revenue was up 48 percent and 33.9 percent on an adjusted basis. Revenue was up in temporary and consultant staffing as well as permanent placement staffing and Protiviti. U.S. revenue increased by 41.1 percent in the second quarter and up by 41.3 percent on an adjusted basis. Revenue was up in temporary and consultant staffing, permanent placement staffing and Protiviti.
For the quarter, the Menlo Park, CA-based recruiting company recorded net income was $149 million, or $1.33 per share, compared to net income of $46 million, or $.41 per share, during the same period a year ago. The results beat Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.05 per share.
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Recent Acquisition
Protiviti recently acquired Identropy, a security consulting firm that specializes in advisory, implementation and managed services for identity and access management (IAM) and access governance solutions. With this acquisition, Protiviti strengthens its ability to meet the growing need to combat data breaches and provide clients with pragmatic and innovative IAM services.
“Identity has become the new technology perimeter for today’s business technology solutions and digital transformation. Yet, IAM projects are often overly complex and mired in point solutions when a holistic platform solution would serve them better,” said Ron Lefferts, managing director and global leader of technology consulting, Protiviti. “The combination of Identropy and Protiviti’s extensive knowledge and expertise will help corporate security teams that are already stretched thin to simplify, fortify and run their identity programs effectively.”
Rising Shares
Robert Half shares have risen 39 percent since the beginning of the year, while the S&P’s 500 index has climbed 16 percent. In the final minutes of trading on Thursday, shares hit $86.66, an increase of 62 percent in the last 12 months.
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media
