Robert Half International Inc. Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component Robert Half International Inc. (NYSE:RHI) reported net income above Wall Street’s expectations for the third quarter. Robert Half International offers specialized staffing and risk consulting services in North America, South America, Europe, Asia and Australia.

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Robert Half International Earnings Cheat Sheet for the Third Quarter

Results: Net income for the staffing and outsourcing services company rose to $44.2 million (31 cents per share) vs. $20.6 million (14 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 20.5% to $984.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: RHI beat the mean analyst estimate of 28 cents per share. Analysts were expecting revenue of $970 million.

Quoting Management: “We saw broad-based demand for our professional services throughout the third quarter, resulting in double-digit year-over-year revenue growth rates for the fifth consecutive quarter,” said Harold M. Messmer, Jr., chairman and CEO of Robert Half International. “All of our divisions performed well, led by our technology staffing division.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 18%, with the biggest boost coming in the second quarter when revenue rose 22% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded two percentage points to 39.8% from the year earlier quarter. Over that span, margins have grown on average 1.5 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose more than twofold and in the first quarter, the figure rose more than threefold.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the second quarter, by one cent in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 30 cents a share to 29 cents over the last sixty days. Over the past sixty days, the average estimate for the fiscal year has reached $1 abs per share, a decline from $1.01.

Competitors to Watch: Kelly Services, Inc. (NASDAQ:KELYA), ManpowerGroup (NYSE:MAN), Kforce Inc. (NASDAQ:KFRC), SFN Group Inc (NYSE:SFN), Barrett Business Services, Inc. (NASDAQ:BBSI), Volt Information Sciences, Inc. (NYSE:VOL), TrueBlue, Inc. (NYSE:TBI), and CDI Corp. (NYSE:CDI).

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(Source: Xignite Financials)