Sidoti Cuts Earnings Estimates for Barrett Business Services

Key Points

• Sidoti lowered its Q2 2026 EPS estimate for Barrett Business Services from $0.61 to $0.56 and set a Q3 2026 EPS estimate of $0.78, while consensus full-year EPS remains $1.88.
• Q1 results beat estimates with revenue of $307.0M (up 4.9%) and EPS of ($0.13) beating by $0.02, but profitability is still recovering amid rising labor and workers’ comp costs as management reiterated 2026 guidance for 3–5% gross billings growth.
• The board declared a quarterly dividend of $0.08 per share (annualized $0.32), payable June 5 with an ex-dividend date of May 22, implying a yield of about 1.1%.

Barrett Business Services, Inc. (NASDAQ:BBSI - Free Report) - Research analysts at Sidoti lowered their Q2 2026 earnings per share estimates for Barrett Business Services in a research note issued to investors on Thursday, May 7th. Sidoti analyst M. Riddick now expects that the business services provider will post earnings per share of $0.56 for the quarter, down from their previous estimate of $0.61. The consensus estimate for Barrett Business Services' current full-year earnings is $1.88 per share. Sidoti also issued estimates for Barrett Business Services' Q3 2026 earnings at $0.78 EPS.

Barrett Business Services (NASDAQ:BBSI - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The business services provider reported ($0.13) earnings per share for the quarter, topping the consensus estimate of ($0.15) by $0.02. The company had revenue of $307.01 million during the quarter, compared to the consensus estimate of $306.68 million. Barrett Business Services had a return on equity of 22.16% and a net margin of 3.24%.Barrett Business Services's revenue was up 4.9% compared to the same quarter last year. During the same quarter last year, the business posted ($0.04) earnings per share.

Several other research firms also recently weighed in on BBSI. Zacks Research raised Barrett Business Services from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 28th. Barrington Research reissued an "outperform" rating and set a $41.00 price target on shares of Barrett Business Services in a research report on Monday, April 27th. Finally, Roth Mkm dropped their price target on Barrett Business Services from $54.00 to $42.00 and set a "buy" rating for the company in a research report on Thursday, February 26th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $41.50.

Barrett Business Services Stock Performance

Barrett Business Services stock opened at $29.90 on Friday. The stock has a fifty day moving average of $29.15 and a two-hundred day moving average of $33.97. The company has a market capitalization of $734.34 million, a price-to-earnings ratio of 19.42, a PEG ratio of 0.98 and a beta of 0.97. Barrett Business Services has a fifty-two week low of $25.33 and a fifty-two week high of $49.65.

Hedge Funds Weigh In On Barrett Business Services

Large investors have recently added to or reduced their stakes in the business. Farther Finance Advisors LLC lifted its position in Barrett Business Services by 1,388.3% during the third quarter. Farther Finance Advisors LLC now owns 893 shares of the business services provider's stock worth $40,000 after buying an additional 833 shares during the period. Kestra Advisory Services LLC purchased a new position in Barrett Business Services during the fourth quarter worth about $39,000. AlphaQuest LLC purchased a new position in Barrett Business Services during the third quarter worth about $54,000. Bard Associates Inc. purchased a new position in Barrett Business Services during the fourth quarter worth about $50,000. Finally, State of Alaska Department of Revenue purchased a new position in Barrett Business Services during the third quarter worth about $66,000. 86.76% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, EVP James R. Potts sold 1,803 shares of the stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $28.68, for a total transaction of $51,710.04. Following the transaction, the executive vice president directly owned 33,837 shares in the company, valued at approximately $970,445.16. This represents a 5.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Gary Kramer bought 8,370 shares of Barrett Business Services stock in a transaction that occurred on Friday, March 13th. The shares were acquired at an average price of $26.89 per share, for a total transaction of $225,069.30. Following the completion of the transaction, the chief executive officer directly owned 328,801 shares of the company's stock, valued at $8,841,458.89. This trade represents a 2.61% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 4.10% of the company's stock.

Barrett Business Services Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 22nd will be given a dividend of $0.08 per share. The ex-dividend date is Friday, May 22nd. This represents a $0.32 annualized dividend and a yield of 1.1%. Barrett Business Services's dividend payout ratio is 15.31%.

Key Stories Impacting Barrett Business Services

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

• Positive Sentiment: Q1 results beat expectations: revenue rose ~5% to $307.0M, gross billings grew ~3% to $2.16B, and EPS of ($0.13) beat consensus by $0.02 — an outcome investors typically reward as evidence of execution and top-line resilience. BBSI Reports First-Quarter 2026 Financial Results
• Positive Sentiment: Company reiterated 2026 outlook for 3–5% gross billings growth and cited workers’ compensation pricing momentum — a forward-looking metric that supports revenue and margin recovery expectations. BBSI reiterates 2026 outlook for 3-5% gross billings growth while highlighting workers’ comp pricing momentum
• Positive Sentiment: Board declared a quarterly cash dividend of $0.08 per share (payable June 5; ex-dividend May 22), which can attract income-oriented shareholders and provide price support.
• Neutral Sentiment: Full earnings and conference-call transcripts are available (Fool / Seeking Alpha / Zacks), offering details on client trends, pricing actions and expense dynamics for investors doing deeper diligence. Barrett (BBSI) Q1 2026 Earnings Transcript
• Negative Sentiment: Rising labor costs and higher workers’ comp expenses are pressuring margins; management acknowledged these headwinds even as it reiterated guidance — a risk to near-term profitability if pricing and productivity don’t offset cost inflation. BBSI reaffirms 2026 growth outlook as labor costs climb
• Negative Sentiment: EPS remains a loss year-over-year (Q1 EPS of ($0.13) vs. ($0.04) a year ago), highlighting that profitability recovery is still in progress and giving investors reason for caution despite the beat. Barrett Business Services (BBSI) Reports Q1 Loss, Beats Revenue Estimates

About Barrett Business Services

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.

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