Balanced View on Robert Half - Analyst Blog
31 Marzo 2014 - 11:00AM
Zacks
On Mar 24, 2014, we issued an updated research report on
Robert Half International Inc (RHI).
This global staffing firm reported fourth-quarter 2013 results
on Jan 31. Robert Half delivered fourth quarter 2013 earnings of 49
cents per share, beating the Zacks Consensus Estimate by a penny
and the prior-year quarter adjusted earnings by 16.7%. Despite
sluggish performance in the international markets, Robert Half
witnessed strong year-over-year earnings growth driven by solid
demand for services by skilled professionals in the U.S. In fact,
the company’s earnings have now grown in double-digits for 15
straight quarters on a year over year basis, driven by growing
demand for skilled workforce and consulting services.
Robert Half's total revenue grew 4.8% year over year to $1.08
billion in the fourth quarter and beat the Zacks Consensus Estimate
by 0.8%. On a constant currency basis, revenues increased 3% year
over year, driven by 6% growth in the U.S., which was offset by a
3% decline in international staffing revenues in the fourth
quarter. Higher sales, mainly driven by Protiviti operations, also
boosted the company’s operating margin.
Protiviti is one of the key drivers of revenue and operating
performance at Robert Half. It helps companies solve problems in
finance, technology, operations, governance, risk and internal
audit. The strong Protiviti performance has added to year-over-year
growth rates of U.S. staffing revenues and to global operating
income in 2013.
We are impressed that Robert Half’s revenues have been growing
since the past three years. The rising staffing needs of the
company’s clients and a gradual improvement in economic conditions
and job markets in the U.S. led to a rise in the demand for
temporary workers as a percentage of total U.S. employment. The
U.S. health care reform and consumer protection regulations are
also fueling the demand for the company’s services.
According to Robert Half, the demand for skilled professionals
at small and midsized businesses will increase in 2014, as these
companies do not have a human resource department of their own and
as a result opt for Robert Half’s personalized and consultative
approach. The company also expects a rising need for skilled
finance and information technology talent in the regulatory and
compliance space.
While the company performed well in the U.S. in 2013, sales
growth rates outside the U.S have declined, impacted by weaker
economies in several countries, most notably in Europe. The ongoing
debt crisis in Europe has hurt demand for recruitment services
internationally. Though the company believes that its non-U.S.
staffing operations are well positioned to benefit in a stronger
economic climate in 2014, we remain skeptical till the time
positive results are achieved. The company’s permanent placement
services are also witnessing soft growth for the last few quarters,
which is a concern. Robert Half holds a Zacks Rank #3 (Hold).
Key Picks from the Sector
Manpower Group, Inc. (MAN) is a
better-ranked stock in the staffing industry, with a Zacks Rank #2
(Buy). Investors can also consider Unilever Plc
(UL) and Beam Inc (BEAM) from the consumer staples
sector, both carrying a Zacks Rank #2.
BEAM INC (BEAM): Free Stock Analysis Report
MANPOWER INC WI (MAN): Free Stock Analysis Report
ROBT HALF INTL (RHI): Free Stock Analysis Report
UNILEVER PLC (UL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Beam Inc. (NYSE:BEAM)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Beam Inc. (NYSE:BEAM)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024