Sidoti Predicts Lower Earnings for Barrett Business Services

Key Points

• Sidoti lowered Barrett Business Services’ Q1 2027 EPS forecast to $(0.19) from $(0.09), while projecting FY2027 earnings of $2.03 per share.
• Barrett reported quarterly EPS of $0.52, missing the $0.56 consensus estimate, while revenue of $319.27 million was slightly below expectations and profitability remained pressured.
• Despite the weaker earnings outlook, analysts maintain a “Moderate Buy” consensus with a $41 target price; the company also declared a quarterly dividend of $0.08 per share, yielding approximately 1% annually.

Barrett Business Services, Inc. (NASDAQ:BBSI - Free Report) - Sidoti reduced their Q1 2027 earnings estimates for shares of Barrett Business Services in a research report issued to clients and investors on Thursday, August 6th. Sidoti analyst M. Riddick now expects that the business services provider will post earnings of ($0.19) per share for the quarter, down from their previous forecast of ($0.09). The consensus estimate for Barrett Business Services' current full-year earnings is $1.68 per share. Sidoti also issued estimates for Barrett Business Services' FY2027 earnings at $2.03 EPS.

Other equities analysts have also recently issued reports about the company. Zacks Research upgraded Barrett Business Services from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 28th. Citigroup reaffirmed an "outperform" rating on shares of Barrett Business Services in a research report on Thursday. Barrington Research set a $44.00 target price on shares of Barrett Business Services in a research note on Thursday. Wall Street Zen upgraded shares of Barrett Business Services from a "sell" rating to a "hold" rating in a research report on Saturday, June 6th. Finally, Weiss Ratings upgraded shares of Barrett Business Services from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, July 13th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $41.00.

Barrett Business Services Price Performance

NASDAQ:BBSI opened at $33.18 on Monday. Barrett Business Services has a 52 week low of $25.33 and a 52 week high of $49.65. The stock's fifty day moving average is $36.55 and its two-hundred day moving average is $33.04. The company has a market capitalization of $814.90 million, a P/E ratio of 24.40, a P/E/G ratio of 1.23 and a beta of 0.94.

Barrett Business Services (NASDAQ:BBSI - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The business services provider reported $0.52 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.04). The firm had revenue of $319.27 million during the quarter, compared to analysts' expectations of $321.55 million. Barrett Business Services had a net margin of 2.77% and a return on equity of 20.95%.

Hedge Funds Weigh In On Barrett Business Services

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Kestra Advisory Services LLC purchased a new stake in shares of Barrett Business Services during the fourth quarter worth $39,000. Bard Associates Inc. purchased a new position in Barrett Business Services in the fourth quarter valued at $50,000. Farther Finance Advisors LLC boosted its holdings in Barrett Business Services by 63.0% in the fourth quarter. Farther Finance Advisors LLC now owns 1,456 shares of the business services provider's stock valued at $53,000 after purchasing an additional 563 shares during the period. Tripletail Wealth Management LLC grew its stake in Barrett Business Services by 152.6% during the 4th quarter. Tripletail Wealth Management LLC now owns 1,920 shares of the business services provider's stock worth $70,000 after purchasing an additional 1,160 shares in the last quarter. Finally, NewEdge Advisors LLC grew its stake in Barrett Business Services by 270.2% during the 2nd quarter. NewEdge Advisors LLC now owns 1,999 shares of the business services provider's stock worth $83,000 after purchasing an additional 1,459 shares in the last quarter. Hedge funds and other institutional investors own 86.76% of the company's stock.

Insider Activity

In related news, Director Anthony Meeker sold 12,000 shares of the firm's stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $37.85, for a total transaction of $454,200.00. Following the completion of the transaction, the director directly owned 44,945 shares in the company, valued at $1,701,168.25. This trade represents a 21.07% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP James R. Potts sold 3,490 shares of Barrett Business Services stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $38.00, for a total value of $132,620.00. Following the completion of the transaction, the executive vice president directly owned 32,035 shares of the company's stock, valued at approximately $1,217,330. This represents a 9.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 20,779 shares of company stock worth $786,233. 4.80% of the stock is owned by corporate 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 dividend of $0.08 per share. The ex-dividend date of this dividend is Friday, August 21st. This represents a $0.32 annualized dividend and a yield of 1.0%. Barrett Business Services's dividend payout ratio is presently 23.53%.

Barrett Business Services News Roundup

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

• Positive Sentiment: BBSI declared a quarterly dividend of $0.08 per share, payable September 4 to shareholders of record August 21. The dividend provides a modest annualized yield of approximately 1%. Barrett Business Services dividend announcement
• Neutral Sentiment: Second-quarter revenue of $319.27 million was broadly in line with expectations of $321.55 million, suggesting demand held up despite pressure on profitability. BBSI Q2 2026 earnings results
• Negative Sentiment: Adjusted earnings were $0.52 per share, below the $0.56 consensus estimate and down from $0.70 a year earlier. The earnings miss, combined with a net margin of only 2.77%, is likely weighing on the shares. BBSI misses Q2 earnings and revenue estimates
• Negative Sentiment: Sidoti reduced its EPS forecasts across the next several quarters: Q3 2026 to $0.69 from $0.78, Q4 2026 to $0.55 from $0.65, Q2 2027 to $0.76 from $0.82, Q3 2027 to $0.85 from $0.93, and Q4 2027 to $0.62 from $0.72. These revisions indicate weaker expected earnings momentum than previously anticipated.
• Negative Sentiment: Management commentary and post-earnings analysis highlighted margin pressure and reductions in client workforces, which could constrain payroll-related revenue and operating leverage. BBSI Q2 deep dive

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.

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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