Robert Half Intl Earnings: Tops Analysts’ Expectations

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 Inc. Earnings Cheat Sheet

Results: Net income for Robert Half International Inc. rose to $57.7 million (41 cents per share) vs. $44.2 million (31 cents per share) in the same quarter a year earlier. This marks a rise of 30.5% from the year-earlier quarter.

Revenue: Rose 4.9% to $1.03 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Robert Half International Inc. beat the mean analyst estimate of 35 cents per share. Analysts were expecting revenue of $1.04 billion.

Quoting Management: “We were pleased with the company’s operating performance during the third quarter,” said Harold M. Messmer, Jr., chairman and CEO of Robert Half International. “For the ninth consecutive quarter, U.S. staffing revenues saw double-digit, year-over-year growth rates. In addition, global operating income grew by 31 percent with higher gross margins; lower selling, general and administrative expense ratios; and strong Protiviti results.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding, as the company’s gross margin expanded 0.4 percentage point from the year-earlier quarter to 40.2%. During this time, margins have grown an average of 1.1 percentage points per quarter on a year-over-year basis.

The company has now seen its net income rise for three quarters in a row. In the second quarter, net income rose 24.4% and in the first quarter, the figure rose 81%.

Revenue has increased for four quarters in a row. Revenue increased 9.6% to $1.03 billion in the second quarter. The figure rose 15.3% in the first quarter from the year earlier and climbed 14.3% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has beaten estiamtes for two quarters in a row. In the second quarter, it topped expectations with net income of 34 cents versus a mean estimate of net income of 28 cents per share.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 39 cents per share, up from 38 cents ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $1.36 per to share to $1.46.

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

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