Robert Half International Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Robert Half International Inc. (NYSE:RHI) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. Robert Half International offers specialized staffing and risk consulting services in North America, South America, Europe, Asia and Australia.

Robert Half International Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 41 cents per share, a rise of 36.7% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 49% versus last year to $1.55.

Last quarter, the company came in at net income of 41 cents per share against a mean estimate of profit of 39 cents per share, beating estimates after missing them in the previous quarter. In the second quarter, it missed forecasts by 3 cents.

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A Look Back: In the third quarter, profit rose 30.5% to $57.7 million (41 cents a share) from $44.2 million (31 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 4.9% to $1.03 billion from $984.7 million.

Here’s how Robert Half International traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

rhi

Stock Price Performance: Between October 25, 2012 and January 23, 2013, the stock price rose $6.50 (24%), from $27.07 to $33.57. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 15, 2012, when shares rose for eight straight days, increasing 10.8% (+$3.01) over that span. It saw one of its worst periods between May 11, 2012 and May 18, 2012 when shares fell for six straight days, dropping 4.5% (-$1.33) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 6.8% in revenue from the year-earlier quarter to $1.04 billion.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 81% in the first quarter and 24.4% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 14.3% in the fourth quarter of the last fiscal year, 15.3% in the first quarter and 9.6% in the second quarter before increasing again in the third quarter.

Analyst Ratings: With nine analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.07 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.1 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7.3% to $532.6 million while assets rose 6.2% to $1.1 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)