Robert Half (NYSE:RHI) Shares Gap Up on Strong Earnings

Key Points

• Robert Half shares jumped after the company reported quarterly EPS of $0.49, beating the $0.47 analyst consensus and rising from $0.43 a year earlier.
• Revenue totaled approximately $1.36 billion, in line with estimates but up only 0.4% year over year, indicating limited growth in staffing demand.
• The company pays a $0.59 quarterly dividend, equivalent to a 5.6% yield, while analyst sentiment remains mixed: the stock has a consensus “Hold” rating and an average price target of $36.75.

Shares of Robert Half Inc. (NYSE:RHI - Get Free Report) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $37.68, but opened at $41.95. Robert Half shares last traded at $42.6590, with a volume of 472,966 shares trading hands.

The business services provider reported $0.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.47 by $0.02. The firm had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.36 billion. Robert Half had a net margin of 2.17% and a return on equity of 9.18%. Robert Half's revenue was up .4% on a year-over-year basis. During the same period in the previous year, the business posted $0.43 EPS.

Robert Half Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, August 25th were issued a $0.59 dividend. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $2.36 annualized dividend and a yield of 5.6%. Robert Half's dividend payout ratio is presently 205.22%.

Key Stories Impacting Robert Half

Here are the key news stories impacting Robert Half this week:

• Positive Sentiment: Robert Half reported third-quarter earnings of $0.49 per share, above the $0.47 analyst consensus and up from $0.43 in the year-ago quarter. The earnings beat likely supported investor buying. Robert Half Beats Q3 Earnings Estimates
• Positive Sentiment: Quarterly revenue reached approximately $1.36 billion, while net income increased year over year. The results indicate that profitability improved despite limited top-line growth. Robert Half Reports Third-Quarter Financial Results
• Neutral Sentiment: Revenue was essentially in line with Wall Street expectations and increased only about 0.4% from the prior-year period. The sales performance met forecasts but does not yet signal a strong recovery in demand for staffing services. Robert Half Q3 Key Metrics
• Negative Sentiment: Robert Half’s reported net margin was relatively low at 2.17%, and return on equity was 9.18%. These figures may temper enthusiasm if investors remain concerned about margin pressure and the pace of an employment-market recovery. Robert Half Q3 Earnings Call Transcript

Analyst Ratings Changes

RHI has been the topic of several research analyst reports. BMO Capital Markets raised shares of Robert Half from a "market perform" rating to an "outperform" rating and set a $47.00 target price on the stock in a research note on Monday, July 27th. Robert W. Baird set a $53.00 target price on shares of Robert Half in a research note on Friday. The Goldman Sachs Group reiterated a "sell" rating and issued a $33.00 price target on shares of Robert Half in a research report on Friday. Weiss Ratings cut shares of Robert Half from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, October 9th. Finally, Truist Financial lifted their target price on Robert Half from $40.00 to $50.00 and gave the company a "buy" rating in a research note on Wednesday, July 22nd. Three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $36.75.

Hedge Funds Weigh In On Robert Half

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RHI. RWC Asset Management LLP bought a new position in Robert Half during the third quarter valued at about $388,000. Fifth Third Wealth Advisors LLC bought a new stake in shares of Robert Half in the 3rd quarter worth about $346,000. Reyes Financial Architecture Inc. bought a new stake in Robert Half during the third quarter worth about $36,000. 55 North Private Wealth LLC acquired a new stake in Robert Half during the 3rd quarter valued at $240,000. Finally, Prime Capital Investment Advisors LLC bought a new position in shares of Robert Half in the third quarter valued at about $312,000. Institutional investors and hedge funds own 92.41% of the company's stock.

Robert Half Price Performance

The stock's 50 day simple moving average is $38.75 and its two-hundred day simple moving average is $34.17. The company has a market capitalization of $4.34 billion, a P/E ratio of 36.88 and a beta of 0.84.

Robert Half Company Profile

Robert Half Inc NYSE: RHI is a global talent solutions and business consulting company. Through its Robert Half brand, the company provides temporary, project-based and permanent staffing services, connecting employers with professionals in accounting and finance, administrative and customer support, technology, legal, and marketing and creative fields.

Robert Half also operates Protiviti, a global consulting firm that helps organizations address internal audit, risk and compliance, technology, business performance, and digital transformation challenges.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.