Why Is Robert Half (RHI) Up 3.7% Since Last Earnings Report?

A month has gone by since the last earnings report for Robert Half (RHI). Shares have added about 3.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Robert Half due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Robert Half Q2 Earnings Miss EstimatesRobert Half International reported lower-than-expected second-quarter 2024 results.Quarterly earnings of 66 cents per share missed the consensus mark by 7% and declined 34% year over year. Revenues of $1.47 billion missed the consensus mark by 1.7% and decreased 10.2% year over year.Talent Solutions, Protiviti Revenues DownTalent Solutions’ revenues of $936 million decreased 14% year over year on an as-adjusted basis and came in below our estimate of $1 billion. U.S. Talent Solutions’ revenues of $701 million were down 15% year over year. Non-U.S. Talent Solutions revenues decreased 10% year over year on an adjusted basis to $235 million.Protiviti revenues came in at $487 million, down 1% year over year on an as-adjusted basis and below our expectation of $487.9 million. The U.S. Protiviti revenues of $399 million increased 3% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $88 million declined 16% year over year on an as-adjusted basis.Currency exchange rate movements decreased total revenues by $6 million, Talent Solutions revenues by $5 million and Protiviti revenues by $1 million. The quarter had 63.5 billing days compared with 63.3 billing days in the year-ago quarter.Margins ContractAdjusted gross profit in the quarter was $579.9 million, down 12.9% year over year. The adjusted gross profit margin of 39.4% declined 120 basis points year over year.Key Balance Sheet and Cash Flow FiguresRobert Half ended the quarter with a cash and cash equivalent balance of $547.4 million compared with $540.9 million witnessed at the previous-quarter end. Operating cash in the quarter was $142 million and capital expenditures were $12.4 million. RHI paid out $55 million in dividends and repurchased shares worth $60 million in the reported period.Q3 GuidanceFor the third quarter of 2024, Robert Half expects revenues of $1.39-$1.49 billion. EPS is expected between 53 cents and $67 cents.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.The consensus estimate has shifted -19.07% due to these changes.VGM ScoresAt this time, Robert Half has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Robert Half has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Robert Half Inc. (RHI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks