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Robert Half's (RHI) Q2 Earnings Miss Estimates, Decline Y/Y
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Robert Half International Inc. (RHI - Free Report) reported lower-than-expected second-quarter 2024 results.
Quarterly earnings of 66 cents per share missed the consensus mark by 7% and declined 34% year over year. Revenues of $1.47 billion missed the consensus mark by 1.7% and decreased 10.2% year over year.
The company’s shares have depreciated 26.3% year to date compared with the 12.8% decline of the industry.
Robert Half Inc. Price, Consensus and EPS Surprise
Talent Solutions’ revenues of $936 million decreased 14% year over year on an as-adjusted basis and came in below our estimate of $1 billion. U.S. Talent Solutions’ revenues of $701 million were down 15% year over year. Non-U.S. Talent Solutions revenues decreased 10% year over year on an adjusted basis to $235 million.
Protiviti revenues came in at $487 million, down 1% year over year on an as-adjusted basis and below our expectation of $487.9 million. The U.S. Protiviti revenues of $399 million increased 3% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $88 million declined 16% year over year on an as-adjusted basis.
Currency exchange rate movements decreased total revenues by $6 million, Talent Solutions revenues by $5 million and Protiviti revenues by $1 million. The quarter had 63.5 billing days compared with 63.3 billing days in the year-ago quarter.
Margins Contract
Adjusted gross profit in the quarter was $579.9 million, down 12.9% year over year. The adjusted gross profit margin of 39.4% declined 120 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 $547.4 million compared with $540.9 million witnessed at the previous-quarter end. Operating cash in the quarter was $142 million and capital expenditures were $12.4 million. RHI paid out $55 million in dividends and repurchased shares worth $60 million in the reported period.
Q3 Guidance
For the third quarter of 2024, Robert Half expects revenues of $1.39-$1.49 billion. The current Zacks Consensus Estimate is pegged higher at $1.53 billion.
EPS is expected between 53 cents and $67 cents. The current Zacks Consensus Estimate of 78 cents is pegged higher than the guided range.
Omnicom (OMC - Free Report) reported impressive second-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and increased 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% year over year.
EFX’s adjusted earnings were $1.82 per share, beating the consensus estimate by 5.8% and increasing 6.4% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 8.6% from the year-ago quarter.
ManpowerGroup (MAN - Free Report) reported mixed second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year.
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Robert Half's (RHI) Q2 Earnings Miss Estimates, Decline Y/Y
Robert Half International Inc. (RHI - Free Report) reported lower-than-expected second-quarter 2024 results.
Quarterly earnings of 66 cents per share missed the consensus mark by 7% and declined 34% year over year. Revenues of $1.47 billion missed the consensus mark by 1.7% and decreased 10.2% year over year.
The company’s shares have depreciated 26.3% year to date compared with the 12.8% decline of the industry.
Robert Half Inc. Price, Consensus and EPS Surprise
Robert Half Inc. price-consensus-eps-surprise-chart | Robert Half Inc. Quote
Talent Solutions, Protiviti Revenues Down
Talent Solutions’ revenues of $936 million decreased 14% year over year on an as-adjusted basis and came in below our estimate of $1 billion. U.S. Talent Solutions’ revenues of $701 million were down 15% year over year. Non-U.S. Talent Solutions revenues decreased 10% year over year on an adjusted basis to $235 million.
Protiviti revenues came in at $487 million, down 1% year over year on an as-adjusted basis and below our expectation of $487.9 million. The U.S. Protiviti revenues of $399 million increased 3% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $88 million declined 16% year over year on an as-adjusted basis.
Currency exchange rate movements decreased total revenues by $6 million, Talent Solutions revenues by $5 million and Protiviti revenues by $1 million. The quarter had 63.5 billing days compared with 63.3 billing days in the year-ago quarter.
Margins Contract
Adjusted gross profit in the quarter was $579.9 million, down 12.9% year over year. The adjusted gross profit margin of 39.4% declined 120 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 $547.4 million compared with $540.9 million witnessed at the previous-quarter end. Operating cash in the quarter was $142 million and capital expenditures were $12.4 million. RHI paid out $55 million in dividends and repurchased shares worth $60 million in the reported period.
Q3 Guidance
For the third quarter of 2024, Robert Half expects revenues of $1.39-$1.49 billion. The current Zacks Consensus Estimate is pegged higher at $1.53 billion.
EPS is expected between 53 cents and $67 cents. The current Zacks Consensus Estimate of 78 cents is pegged higher than the guided range.
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.
Results From Some Service Providers
Omnicom (OMC - Free Report) reported impressive second-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and increased 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% year over year.
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2024 results.
EFX’s adjusted earnings were $1.82 per share, beating the consensus estimate by 5.8% and increasing 6.4% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 8.6% from the year-ago quarter.
ManpowerGroup (MAN - Free Report) reported mixed second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year.