TrueBlue (NYSE:TBI) Releases Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• Beat and revenue: TrueBlue reported EPS of ($0.41), beating estimates by $0.04, and revenue of $399 million (+8% YoY; organic +7%), with PeopleReady up 19% and skilled/energy work more than doubling as skilled approaches one-third of staffing revenue.
• Margins & balance sheet: Gross margin fell to 19.8% from 23.3% largely due to the non-repeat of a prior workers' compensation reserve benefit and a mix shift to lower-margin energy work; the firm posted a $20 million net loss (including a $4M goodwill impairment) and ended Q1 with $24M cash, $74M debt and $60M total liquidity, prioritizing debt paydown over buybacks.
• Operations & outlook: Management said AI and proprietary platforms (JobStack, Affinix, StaffTrack) are boosting recruiter efficiency and fill rates and driving new demand from data-center power projects, while SG&A fell ~8% despite 8% revenue growth, and the company expects sequential gross-margin expansion and improved profitability in Q2.

TrueBlue (NYSE:TBI - Get Free Report) posted its quarterly earnings results on Tuesday. The business services provider reported ($0.41) EPS for the quarter, topping the consensus estimate of ($0.45) by $0.04, Zacks reports. TrueBlue had a negative return on equity of 6.87% and a negative net margin of 2.97%.

Here are the key takeaways from TrueBlue's conference call:

• TrueBlue delivered revenue of $399 million (+8% YoY; organic +7%), with PeopleReady up 19% and skilled/energy work more than doubling—skilled businesses are approaching a third of staffing revenue.
• Management highlighted AI and proprietary platforms (JobStack, Affinix, StaffTrack) driving recruiter efficiency, higher fill rates and new demand from data-center power projects, with roughly one-third of active energy projects tied to data centers.
• Operating discipline showed through: SG&A fell ~8% while revenue grew 8%, and the company expects sequential gross-margin expansion and improved profitability in Q2 driven by cost actions and operating leverage.
• Gross margin dropped to 19.8% from 23.3% YoY, largely due to the non-repeat of prior-year favorable workers' compensation reserve development and a revenue mix shift toward lower-margin energy work with pass-through travel costs.
• TrueBlue reported a net loss of $20 million (includes a $4M non-cash goodwill impairment), finished Q1 with $24M cash and $74M debt (total liquidity $60M), and plans to prioritize debt paydown over share buybacks until free cash flow improves.

TrueBlue Trading Up 1.4%

Shares of NYSE:TBI traded up $0.09 during midday trading on Tuesday, reaching $6.06. 574,788 shares of the company's stock were exchanged, compared to its average volume of 316,277. The firm's 50 day simple moving average is $3.99 and its two-hundred day simple moving average is $4.64. The company has a debt-to-equity ratio of 0.24, a current ratio of 2.15 and a quick ratio of 2.15. The stock has a market cap of $183.83 million, a price-to-earnings ratio of -3.78, a P/E/G ratio of 5.25 and a beta of 1.61. TrueBlue has a fifty-two week low of $3.18 and a fifty-two week high of $7.78.

Insider Transactions at TrueBlue

In other TrueBlue news, CEO Taryn R. Owen acquired 20,400 shares of the business's stock in a transaction that occurred on Tuesday, February 24th. The stock was purchased at an average cost of $3.79 per share, with a total value of $77,316.00. Following the transaction, the chief executive officer owned 791,807 shares of the company's stock, valued at $3,000,948.53. This trade represents a 2.64% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Carl Schweihs acquired 12,500 shares of the business's stock in a transaction that occurred on Monday, February 23rd. The shares were acquired at an average cost of $3.72 per share, with a total value of $46,500.00. Following the completion of the transaction, the chief financial officer directly owned 289,069 shares in the company, valued at approximately $1,075,336.68. The trade was a 4.52% increase in their position. The SEC filing for this purchase provides additional information. 8.00% of the stock is currently owned by company insiders.

Institutional Trading of TrueBlue

Hedge funds and other institutional investors have recently modified their holdings of the business. Dynamic Technology Lab Private Ltd acquired a new position in TrueBlue in the 4th quarter valued at about $48,000. Simplex Trading LLC grew its position in TrueBlue by 56.9% in the 4th quarter. Simplex Trading LLC now owns 11,018 shares of the business services provider's stock valued at $50,000 after acquiring an additional 3,995 shares in the last quarter. Balyasny Asset Management L.P. acquired a new position in TrueBlue in the 4th quarter valued at about $53,000. Jain Global LLC acquired a new position in TrueBlue in the 4th quarter valued at about $58,000. Finally, Federated Hermes Inc. acquired a new position in TrueBlue in the 2nd quarter valued at about $69,000. 97.15% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

TBI has been the topic of several analyst reports. Zacks Research upgraded TrueBlue from a "strong sell" rating to a "hold" rating in a report on Monday, April 20th. Weiss Ratings upgraded TrueBlue from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, April 29th. Wall Street Zen upgraded TrueBlue from a "sell" rating to a "hold" rating in a report on Saturday, April 4th. Finally, Robert W. Baird set a $5.50 price objective on TrueBlue in a research report on Thursday, February 19th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $5.75.

About TrueBlue

TrueBlue, Inc is a Tacoma, Washington–based workforce solutions provider specializing in temporary staffing, permanent placement and managed service solutions. Operating through its subsidiaries and brands, TrueBlue connects clients across manufacturing, logistics, retail, construction and public sector markets with skilled professionals for both short-term and long-term engagements. The company's offerings encompass on-demand blue-collar labor, specialized industrial staffing, recruitment process outsourcing (RPO) and contingent workforce management.

TrueBlue's primary service lines include PeopleReady, which supplies general labor for construction, hospitality and event services; PeopleManagement, which focuses on technical and industrial professionals; PeopleScout, a global RPO business offering end-to-end talent acquisition and consulting; and Staff Management | SMX, which delivers seasonal staffing for large-scale events, amusement parks and federal workforce contracts.

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.