Q3 EPS Estimates for Barrett Business Services Cut by Sidoti

Key Points

• Sidoti cut Barrett Business Services’ Q3 2026 EPS estimate to $0.69 from $0.78, while forecasting $0.55 for Q4 2026. The full-year consensus estimate stands at $1.88 per share.
• Barrett reported Q2 EPS of $0.52, missing the $0.56 consensus, while revenue of $319.27 million also fell short of expectations. The earnings miss contributed to concerns about near-term profitability and momentum.
• Analysts maintain a consensus “Moderate Buy” rating with a $41.00 average price target, above the stock’s recent $33.09 level. The company also declared a quarterly dividend of $0.08 per share, equivalent to a 1.0% annualized yield.

Barrett Business Services, Inc. (NASDAQ:BBSI - Free Report) - Equities researchers at Sidoti lowered their Q3 2026 earnings per share (EPS) estimates for shares of Barrett Business Services in a research report issued on Thursday, August 6th. Sidoti analyst M. Riddick now anticipates that the business services provider will earn $0.69 per share for the quarter, down from their prior forecast of $0.78. The consensus estimate for Barrett Business Services' current full-year earnings is $1.88 per share. Sidoti also issued estimates for Barrett Business Services' Q4 2026 earnings at $0.55 EPS, Q2 2027 earnings at $0.76 EPS, Q3 2027 earnings at $0.85 EPS and Q4 2027 earnings at $0.62 EPS.

Barrett Business Services (NASDAQ:BBSI - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The business services provider reported $0.52 earnings per share for the quarter, missing analysts' consensus estimates of $0.56 by ($0.04). Barrett Business Services had a net margin of 2.77% and a return on equity of 20.38%. The company had revenue of $319.27 million for the quarter, compared to the consensus estimate of $321.55 million.

A number of other analysts have also recently weighed in on BBSI. Wall Street Zen upgraded shares of Barrett Business Services from a "sell" rating to a "hold" rating in a report on Saturday, June 6th. Barrington Research set a $44.00 price objective on shares of Barrett Business Services in a research note on Thursday. Zacks Research raised shares of Barrett Business Services from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 28th. Citigroup restated an "outperform" rating on shares of Barrett Business Services in a research note on Thursday. Finally, Roth Capital lowered shares of Barrett Business Services from a "buy" rating to a "neutral" rating and cut their price target for the stock from $42.00 to $38.00 in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $41.00.

Barrett Business Services Stock Performance

Shares of Barrett Business Services stock opened at $33.09 on Friday. The company has a market capitalization of $812.69 million, a PE ratio of 24.33, a P/E/G ratio of 1.34 and a beta of 0.94. The company has a 50-day simple moving average of $36.54 and a two-hundred day simple moving average of $33.08. Barrett Business Services has a one year low of $25.33 and a one year high of $49.65.

Institutional Investors Weigh In On Barrett Business Services

A number of large investors have recently bought and sold shares of the company. Mawer Investment Management Ltd. raised its position in Barrett Business Services by 0.7% during the 4th quarter. Mawer Investment Management Ltd. now owns 1,964,053 shares of the business services provider's stock worth $71,118,000 after buying an additional 13,331 shares during the last quarter. Private Capital Management LLC boosted its holdings in shares of Barrett Business Services by 1.2% in the 4th quarter. Private Capital Management LLC now owns 999,371 shares of the business services provider's stock valued at $36,187,000 after acquiring an additional 12,117 shares during the last quarter. Royce & Associates LP increased its stake in shares of Barrett Business Services by 31.6% in the fourth quarter. Royce & Associates LP now owns 870,863 shares of the business services provider's stock worth $31,534,000 after acquiring an additional 208,865 shares during the period. Wellington Management Group LLP increased its stake in shares of Barrett Business Services by 15.3% in the fourth quarter. Wellington Management Group LLP now owns 821,560 shares of the business services provider's stock worth $29,749,000 after acquiring an additional 109,069 shares during the period. Finally, Dimensional Fund Advisors LP raised its holdings in shares of Barrett Business Services by 4.0% during the first quarter. Dimensional Fund Advisors LP now owns 661,181 shares of the business services provider's stock worth $19,295,000 after purchasing an additional 25,221 shares during the last quarter. Hedge funds and other institutional investors own 86.76% of the company's stock.

Insiders Place Their Bets

In other Barrett Business Services news, EVP James R. Potts sold 3,490 shares of Barrett Business Services stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $38.00, for a total transaction of $132,620.00. Following the completion of the sale, the executive vice president owned 32,035 shares of the company's stock, valued at approximately $1,217,330. The trade was a 9.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Anthony Meeker sold 12,000 shares of the business's stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $37.85, for a total value of $454,200.00. Following the sale, the director owned 44,945 shares in the company, valued at approximately $1,701,168.25. The trade was a 21.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 20,779 shares of company stock valued at $786,233 in the last 90 days. 4.80% of the stock is currently owned by company insiders.

Barrett Business Services Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Friday, August 21st will be paid a $0.08 dividend. The ex-dividend date is Friday, August 21st. This represents a $0.32 dividend on an annualized basis and a yield of 1.0%. Barrett Business Services's dividend payout ratio (DPR) is 23.53%.

Barrett Business Services News Roundup

Here are the key news stories impacting Barrett Business Services this week:

• Positive Sentiment: Revenue increased 4% year over year to $319.3 million, while gross billings rose 3% to $2.29 billion. Revenue was broadly in line with expectations, indicating continued underlying business growth. BBSI Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Barrett declared a quarterly dividend of $0.08 per share, payable September 4 to shareholders of record August 21. The dividend equates to $0.32 annually and an indicated yield of approximately 0.8%, providing a modest shareholder return. Barrett Business Services Dividend Announcement
• Neutral Sentiment: Brokerages have set an average price target of $41.50, above the stock’s recent trading level, suggesting analysts see potential upside; however, the target does not offset the immediate earnings disappointment. Brokerages Set BBSI Target Price at $41.50
• Negative Sentiment: Adjusted earnings were $0.52 per share, below the $0.56 consensus estimate and down from $0.70 a year earlier. Revenue of $319.27 million also narrowly missed the $321.55 million forecast, creating concerns about profitability and near-term operating momentum. Barrett Business Services Misses Q2 Earnings and Revenue Estimates

Barrett Business Services Company Profile

Barrett Business Services, Inc NASDAQ: BBSI is a professional employer organization (PEO) headquartered in Northridge, California. Founded in 1971 by Barrett K. Levesque, the company provides comprehensive human resources outsourcing solutions to small and mid-sized businesses. Through its consultative model, Barrett Business Services helps clients streamline administrative processes, mitigate regulatory risk and focus on core operations.

The company's core offerings include payroll administration, employee benefits management, workers' compensation and risk management services.

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.

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