A month has gone by since the last earnings report for Robert Half (RHI Quick QuoteRHI - Free Report) . Shares have added about 3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Robert Half due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Robert Half Q1 Earnings and Revenues Surpass Estimates

Robert Half reported impressive first-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.

Quarterly earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.

Staffing Revenues Decline, Protiviti Up

Global Staffing revenues of $1 billion declined 17.5% year over year on a reported and 17.8% on an adjusted basis. U.S. staffing revenues of $759 million were down 19.6% on a reported and 18.6% on an adjusted basis. Non-U .S. staffing revenues declined 10.1% on a reported and 14.8% on an adjusted basis to $242 million. Currency exchange rate movements increased staffing revenues by $17 million.

The quarter had 62.3 billing days compared with 63.1 in the year-ago quarter. At present, Robert Half operates 322 staffing locations worldwide, with 86 locations situated in 17 countries outside the United States.

Protiviti revenues came in at $397 million, increasing 35.1% year over year on a reported basis and 40.7% on an adjusted basis. The U.S. Protiviti revenues of $316 million increased 35.5% year over year on a reported basis and 37.1% on an adjusted basis. Non-U.S. Protiviti revenues of $81 million increased 33.8% on a reported basis and 26.1% on an adjusted basis.  

Margins Expand

Gross profit in the quarter was $561.7 million, down 8.6% year over year. Gross margin of 40.2% declined 60 basis points year over year. Operating income came in at $151 million with an operating margin of 10.8%.

Key Balance Sheet & Cash Flow Figures

Robert Half ended the quarter with cash and cash equivalents balance of $498 million compared with $547 million witnessed at the end of the previous quarter. The company generated $68 million of cash from operations and capital expenditures were $9.7 million. It paid out $44 million in dividends and repurchased shares worth $61 million in the reported period.

Q2 Guidance

For the second quarter of 2021, Robert Half expects revenues in the range of $1.435 billion to $1.515 billion.

EPS is expected between $1 and $1.1.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 31.94% due to these changes.

VGM Scores

At this time, Robert Half has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Robert Half has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.