Robert Half International Inc. Earnings: Profits Grow by Double Digits For Fifth Straight Quarter
S&P 500 (NYSE:SPY) component Robert Half International Inc. (NYSE:RHI) reported net income above Wall Street’s expectations for the second quarter. Robert Half International Inc. offers specialized staffing and risk consulting services in North America, South America, Europe, Asia and Australia.
Robert Half International Earnings Cheat Sheet for the Second Quarter
Results: Net income for the staffing and outsourcing services company rose to $36.4 million (25 cents per share) vs. $12.2 million (8 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.
Revenue: Rose 22% to $938 million from the year earlier quarter.
Actual vs. Wall St. Expectations: RHI beat the mean analyst estimate of 22 cents per share. It beat the average revenue estimate of $906.8 million.
Quoting Management: “Second-quarter revenues increased 22 percent from one year ago, and second-quarter income per share tripled from the year-ago period,” Harold M. Messmer, Jr., chairman and CEO of Robert Half International. “We saw broad-based, improving demand for our professional staffing services and Protiviti both in North America and abroad. Our permanent placement and technology staffing divisions were particularly strong,” Messmer said. “The pricing environment also continued to improve during the quarter, which contributed to higher gross margins.”
Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded two percentage points to 39.7% from the year earlier quarter. Over that span, margins have grown on average 1.6 percentage points per quarter on a year-over-year basis.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose more than threefold and in the fourth quarter of the last fiscal year, the figure rose 83.2%.
The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by one cent in the third quarter of the last fiscal year.
Revenue has risen the past four quarters. Revenue increased 19.5% to $880.9 million in the first quarter. The figure rose 15.5% in the fourth quarter of the last fiscal year from the year earlier and climbed 12.6% in the third quarter of the last fiscal year from the year-ago quarter.
Competitors to Watch: Kelly Services, Inc. (NASDAQ:KELYA), ManpowerGroup (NYSE:MAN), Kforce Inc. (NASDAQ:KFRC), SFN Group Inc (NYSE:SFN), COMFORCE Corporation (CFS), Barrett Business Services, Inc. (NASDAQ:BBSI), Volt Information Sciences, Inc. (NYSE:VOL), ClearPoint Business Resources, Inc. (CPBRQ), TrueBlue, Inc. (NYSE:TBI), and CDI Corp. (NYSE:CDI).
(Source: Xignite Financials)