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Robert Half's (RHI) Q2 Earnings and Revenues Beat Estimates

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Robert Half International Inc. (RHI - Free Report) reported impressive second-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.

Quarterly earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.

Notably, the company’s shares have appreciated 38.5% year to date, outperforming the 29.8% rally of the industry it belongs to.

Staffing and Protiviti Revenues Rise

Global Staffing revenues of $1.1 billion increased 36.1% year over year on a reported and 33.2% on an adjusted basis. U.S. staffing revenues of $855 million were up 33.6% on a reported and 33.8% on an adjusted basis. Non-U.S. staffing revenues increased 44.8% on a reported and 30.9% on an adjusted basis to $267 million. Currency exchange rate movements increased staffing revenues by $24 million.

The quarter had 63.4 billing days, unchanged from 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 $459 million, up 61.6% year over year on a reported basis and 58.8% on an adjusted basis. The U.S. Protiviti revenues of $366 million increased 62.6% year over year on a reported basis and 62.8% on an adjusted basis. Non-U.S. Protiviti revenues of $93 million increased 57.6% on a reported basis and 43.5% on an adjusted basis.

Margins Expand

Adjusted gross profit in the quarter was $669 million, up 58.1% year over year. Adjusted gross profit margin of 42.3% improved 410 basis points year over year.

Key Balance Sheet and Cash Flow Figures

Robert Half ended the quarter with a cash and cash equivalent balance of $543 million compared with $498 million witnessed at the end of the previous quarter. The company generated $165 million of cash from operations and capital expenditures were $6 million. It paid out $42 million in dividends and repurchased shares worth $63 million in the reported period.

Q3 Guidance

For the third quarter of 2021, Robert Half expects revenues in the range of $1.61 billion to $1.69 billion, the midpoint ($1.65 billion) of which is higher than the current Zacks Consensus Estimate of $1.53 billion.

EPS is expected between $1.35 and $1.45, the midpoint ($1.4) of which is higher than the Zacks Consensus Estimate of $1.06.

Currently, Robert Half carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performance of Some Other Business Services Companies

Equifax (EFX - Free Report) reported better-than-expected second-quarter 2021 results. Adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved 23.8% on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 25.6% year over year.

IHS Markit’s (INFO - Free Report) second-quarter fiscal 2021 adjusted earnings per share of 81 cents beat the consensus mark by 1.3% and increased 17.4% on a year-over-year basis. Total revenues came in at $1.2 billion, surpassing the consensus mark by 3.8% and increasing 15% from the year-ago quarter.

Omnicom (OMC - Free Report) reported second-quarter 2021 adjusted earnings of $1.46 per share that beat the consensus mark by 9.8% and increased 58.7% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 6.7% and increased 27.5% year over year.

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