April 27, 2017 – Robert Half International Inc. / (NYSE:RHI) posted first quarter revenues of $1.29 billion, a two percent decrease from revenues of $1.30 billion during the same quarter last year. The results beat Wall Street expectations. Analysts surveyed by Zacks Investment Research had forecasted revenue of $1.27 billion.
The Menlo Park, CA-based recruiting company record first quarter profit of $78.5 million, or 62 cents per share, compared to earnings of $83.4 million, or 64 cents per share, last year. This also beat Wall Street expectations, which forecasted earnings of 58 cents per share.
- Global Staffing Division: Global staffing revenues at the company declined 2.2 percent year-over-year. While international revenues increased eight percent, U.S. revenues fell 4.6 percent from the prior-year quarter. Currency also had a positive impact of 0.5 percent during the quarter. On a constant currency basis, global staffing declined 2.8 percent.
- Protiviti: Protiviti revenues increased 4.8 percent, driven by 4.8 percent growth in U.S. revenues and 4.5 percent improvement in international revenues. Currency had a positive impact of 0.6 percent during the quarter. On a constant currency basis, Protiviti revenues rose 4.2 percent.
“We were pleased with our financial results for the first quarter, particularly our international staffing operations and Protiviti,” said Harold M. Messmer Jr., chairman and chief executive officer of Robert Half. Return on invested capital was 29 percent during the quarter, he noted.
While the U.S. economic environment is largely stable, and the job market is strong, the hiring cycle remains uncharacteristically long as employers take more time to make hiring decisions, said Mr. Messmer. “Recent reports show a noticeable improvement in optimism about U.S. economic prospects, which should shorten the hiring cycle and benefit our business.”
During the quarter, Robert Half was again ranked first in its industry on Fortune’s list of “World’s Most Admired Companies.” The company has appeared on the publication’s “Most Admired Companies” list each year since 1998. “We are honored,” said Mr. Messmer. “The dedication of our global teams to customer service excellence is reflected in this recognition, and we are proud of their commitment to their clients and the job seekers they place.”
Robert Half top management remains confident of performing well moving forward, given the solid labor market and stable economic landscape. The company said it expects a reduction in the hiring cycle which will, in turn, boost the company’s profitability. Robert Half expects revenues in the range of $1.275 to $1.335 billion for the second quarter. In addition, it projects earnings in the range of 61 to 67 cents per share.
Robert Half shares have declined nearly six percent since the beginning of the year, while the Standard & Poor’s 500 index has increased five percent. In the final minutes of trading upon the release of its earnings, shares reached $45.91, rising slightly in the last 12 months.
Contributed by Dale M. Zupsansky, Managing Editor, Hunt Scanlon Media