Robert Half Posts Strong Q4 and Year End Revenues
February 2, 2018 – Robert Half International Inc. / (NYSE:RHI) posted full year revenues of $5.27 billion, up from $5.25 billion the prior year. The results surpassed Wall Street expectations. The Menlo Park, CA-based recruiting company posted fourth quarter revenues of $1.35 billion, a 6.4 percent increase from the same period last year. This also beat Street forecasts. Five analysts surveyed by Zacks expected $1.31 billion.
Revenue fell in IT staffing, but rose in other verticals. The fastest growth took place in the professional staffing provider’s international markets where permanent placement revenue rose 22.8 percent on a constant currency, same billing day and temporary and consulting staffing revenue rose 14 percent. In the U.S., permanent placement revenue rose 13.2 percent on a same billing day basis, but temporary and consulting staffing revenue rose 1.3 percent.
For the year, net income was $291 million, or $2.33 per share, compared to earnings of $343 million, or $2.67 per share. In the fourth quarter, Robert Half posted earnings of $47 million, or 65 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.
Caldwell Partners Posts 9.8 Percent Q1 Revenue Increase
Caldwell Partners posted first quarter revenues of $14.9 million (Canadian). “The Caldwell Partners team delivered a strong performance in the first quarter,” said John Wallace, CEO. “The overall economic outlook remains healthy, as we continue to experience solid search demand, notwithstanding our unbalanced performance from geography to geography.”
Breakdown
“We were encouraged by the broad-based acceleration of revenue growth rates during the fourth quarter in our staffing operations and Protiviti,” said Harold M. Messmer, Jr., chairman and CEO of Robert Half. “Both our U.S. and non-U.S. operations posted strong results, with our permanent placement business leading the way. The U.S. labor market continues to tighten, resulting in talent shortages in some occupations and higher demand for our services.”
Included in fourth quarter 2017 earnings was the estimated impact of a one-time, non-cash charge to the company’s provision for income taxes of $34 million, or $.27 per share, resulting from the recently enacted Tax Cuts and Jobs Act.
During the quarter, Robert Half’s consulting arm Protiviti has promoted 25 of its directors to the position of managing director. The managing director role is responsible for delivering value to clients with excellence and for mentoring their teams of consultants.
Korn Ferry Posts 10 Percent Revenue Gain
Korn Ferry (NYSE:KFY) posted 2018 fiscal second quarter revenues of $443 million, a 10 percent increase compared to $401.9 million a year ago. Three analysts surveyed by Zacks had expected $421.1 million. Growth was achieved in all three major lines of business: Futurestep (16.7 percent) executive search (13.2 percent) and Hay Group (5.9 percent).
“These new managing directors represent an exceptional level of expertise and client service,” said Joseph Tarantino, Protiviti president and CEO. “At Protiviti, we strive to give our people meaningful opportunities so they can achieve highly successful careers while helping our clients confidently face the future. The size of this promotion group also reflects the opportunities created by the firm’s continued growth.”
Rising Shares
Robert Half shares have risen slightly more than three percent since the beginning of the year, while the Standard & Poor’s 500 index has increased almost six percent. In the final minutes of trading upon release of its numbers, shares hit $57.40, a rise of 24 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
