Robert Half Posts Flat Revenues, Falling Short of Expectations

October 30, 2017 – Robert Half International Inc. / (NYSE:RHI) posted third quarter revenues of $1.32 billion, a one percent decrease from revenues of $1.34 billion during the same quarter last year. This missed Wall Street expectations of $1.33 billion.

The Menlo Park, CA-based recruiting firm recorded a third quarter profit of $84.7 million, or 68 cents per share, compared to earnings of $91 million, or $.71 per share, last year. The results fell short of Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 69 cents per share.

U.S. temporary recruiting and consulting revenue fell three percent. U.S. direct-hire revenue, however, rose 3.2 percent. But looking outside the U.S., international temporary and consulting staffing revenue rose 10.2 percent in the third quarter while international permanent placement revenue rose 15.1 percent.

Protiviti revenues declined about four percent to $209 million, mainly because U.S. revenues were soft. On a constant currency basis, Protiviti revenues fell three percent. U.S. revenues at the segment dropped five percent to $170 million, whereas revenues from international regions surged 12 percent to $39 million (on a constant currency basis).

ManpowerGroup Records Seven Percent Q3 Revenue Gain; U.S. Down 8.8 Percent
ManpowerGroup / (NYSE:MAN) posted revenues of $5.5 billion, an increase of seven percent, compared to revenues of $5.1 billion a year ago. Five analysts surveyed by Zacks Investment Research expected $5.39 billion.

Looking Into The Results

“Our third quarter results were generally as expected and within the range of our previous guidance, led by our strong European operations,” said Harold M. Messmer, chairman and CEO. “Trends strengthened during the quarter, and we are very encouraged by the broad-based improvement in revenue growth rates that began in September and continued into October, particularly in the U.S.,” he said. “During the third quarter, return on invested capital for the company was 30 percent.”

During the third quarter, Robert Half approved a quarterly cash dividend of 24 cents per share. The cash dividend was to have been paid on Sept.15 to all shareholders of record as of Aug. 25. The company has bought back 800,000 shares for $37 million. Approximately 3.4 million shares were available for buyback under the stock repurchase program.

Heidrick & Struggles Posts Double Digit Gains Led by Americas
Executive search, leadership consulting and culture shaping services provider Heidrick & Struggles International / (NASDAQ:HSII) has posted revenues of $159.8 million for the third quarter, an increase of 11.3 percent from the same period last year.

Robert Half expects revenues in the range of $1.2 to $1,3 billion for the fourth quarter. In addition, it projects earnings in the range of 60 to 66 cents per share. The Zacks Consensus Estimate for the fourth quarter is pegged at 66 cents which is at the higher end of the estimated range.

Robert Half shares have climbed slightly more than four percent since the beginning of the year, while the Standard & Poor’s 500 index has risen 15 percent. In the final minutes of trading upon release its third quarter numbers, shares hit $50.86, a climb of 32 percent in the last 12 months.

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Will Schatz, Managing Editor – Hunt Scanlon Media

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