Tuesday, November 11, 2014

Robert Half International Earnings Review

Staffing services company Robert Half International (NYSE: RHI  ) beat analyst estimates for the third quarter and delivered guidance ahead of the Wall Street consensus for the fourth quarter. In an act of almost prescient behavior, the market took the stock more than 5% higher before the results. However, all of these short-term movements shouldn't trouble long-term investors unduly, as the positive drivers behind the stock remain in place. Robert Half is set for continued growth, but what about its valuation?



Robert Half International tops estimates
A quick look at the earnings and guidance versus consensus analyst estimates confirms tht the underlying trends in the business remain strong:

  • Third-quarter revenue of $1.22 billion, versus estimates of $1.2 billion.
  • Third-quarter EPS of $0.63, versus estimates of $0.58.
  • Fourth-quarter revenue guidance of $1.175 billion to $1.225 billion, versus estimates of $1.2 billion.
  • Fourth-quarter EPS guidance of $0.57-$0.62, versus estimates of $0.58.

Moreover, commentary on the trends in the third quarter and the first few weeks of the fourth were positive. The following table summarizes what management disclosed on the conference call.


READ THE FULL EQUITY RESEARCH ARTICLE LINKED