Robert Half (NYSE:RHI) Posts Quarterly Earnings Results, Meets Estimates

Key Points

• Q1 results: Robert Half reported EPS of $0.14, matching estimates, with revenue of $1.30B (below the $1.34B estimate) and a 3.8% year‑over‑year revenue decline; GAAP EPS was pressured by a seasonally elevated 56% tax rate from vested stock‑based compensation.
• Segment outlook: Talent Solutions is showing improving momentum (positive sequential growth and +2.6% YoY contract bill rates), while Protiviti faces headwinds—adjusted revenues down and a $5M Q2 severance—offset by planned ~$30M annual cost cuts to restore margins to ~7%–9% by Q3.
• Market reaction & payout: Shares fell about 7.8% after the results; the company pays a $0.59 quarterly dividend (about an 8.7% yield) but the dividend payout ratio is a high 177%, which may concern investors.

Robert Half (NYSE:RHI - Get Free Report) announced its earnings results on Thursday. The business services provider reported $0.14 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.14, FiscalAI reports. The firm had revenue of $1.30 billion for the quarter, compared to analyst estimates of $1.34 billion. Robert Half had a return on equity of 10.26% and a net margin of 2.47%.The business's revenue was down 3.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.17 EPS.

Here are the key takeaways from Robert Half's conference call:

• Q1 results — global revenues were $1.3 billion (down 4% reported, 6% adjusted) and GAAP EPS fell to $0.14 from $0.17, with a seasonally elevated 56% tax rate driven by vested stock-based compensation that management says will normalize.
• Talent Solutions is showing improving momentum — second consecutive quarter of positive same-day constant-currency sequential growth, March exited materially better than the quarter and early April was nearly flat; contract bill rates rose 2.6% YoY and management expects Q3 YoY growth of 1%-3%.
• Q2 guidance calls for revenue of $1.275B–$1.375B and EPS $0.20–$0.30 ($0.23–$0.33 ex a $0.03 one-time severance), with the midpoint implying about a 4% adjusted revenue decline YoY while assuming continued Talent Solutions sequential improvement.
• Protiviti headwinds — adjusted Q1 revenues were down 4% (U.S. down 6%) due to reduced U.S. financial-services enforcement work, and the company will take a $5 million Q2 severance charge (~$0.03 per share) as part of realignment.
• Cost actions at Protiviti are expected to cut roughly $30 million annually (completed by Q3), which management says will drive Q3 Protiviti adjusted margins to about 7%–9% and help return the segment to year-over-year income growth.

Robert Half Stock Down 7.8%

Shares of NYSE RHI opened at $27.16 on Friday. The firm has a 50-day simple moving average of $24.84 and a 200-day simple moving average of $27.19. The stock has a market capitalization of $2.78 billion, a price-to-earnings ratio of 20.42 and a beta of 0.85. Robert Half has a 52 week low of $21.83 and a 52 week high of $48.54.

Robert Half Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, March 13th. Stockholders of record on Wednesday, February 25th were given a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a dividend yield of 8.7%. The ex-dividend date was Wednesday, February 25th. Robert Half's dividend payout ratio is 177.44%.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the stock. William Blair raised shares of Robert Half from a "market perform" rating to an "outperform" rating in a report on Tuesday. Zacks Research upgraded shares of Robert Half from a "strong sell" rating to a "hold" rating in a research report on Monday, February 2nd. Truist Financial raised their price target on shares of Robert Half from $35.00 to $40.00 and gave the company a "buy" rating in a research note on Friday, January 30th. The Goldman Sachs Group lifted their price objective on Robert Half from $24.00 to $27.00 and gave the stock a "sell" rating in a report on Tuesday, February 3rd. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Robert Half in a research note on Monday, December 29th. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Reduce" and an average price target of $31.75.

Hedge Funds Weigh In On Robert Half

A number of institutional investors and hedge funds have recently bought and sold shares of RHI. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in Robert Half in the second quarter worth approximately $34,000. Gilpin Wealth Management LLC purchased a new stake in Robert Half in the fourth quarter valued at $27,000. Danske Bank A S purchased a new stake in Robert Half in the third quarter valued at $37,000. Parkside Financial Bank & Trust lifted its stake in shares of Robert Half by 1,095.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 2,415 shares of the business services provider's stock valued at $66,000 after purchasing an additional 2,213 shares during the last quarter. Finally, Quarry LP grew its holdings in shares of Robert Half by 175.9% during the 3rd quarter. Quarry LP now owns 2,464 shares of the business services provider's stock worth $84,000 after purchasing an additional 1,571 shares during the period. 92.41% of the stock is currently owned by institutional investors and hedge funds.

Robert Half Company Profile

Robert Half International Inc, founded in 1948 by Robert Half, is a global professional staffing and consulting firm headquartered in Menlo Park, California. As a pioneer in specialized staffing, the company has built a reputation for matching skilled professionals with leading organizations across a range of industries. Robert Half's shares trade on the New York Stock Exchange under the ticker RHI, reflecting its position as one of the longest‐standing and best‐known firms in the staffing sector.

The company offers a comprehensive suite of services, including temporary staffing, permanent placement, and consulting solutions.