Overview

* HireQuest ( HQI ) Q3 revenue declines 9.8% yr/yr but beats analyst expectations

* Adjusted EBITDA for Q3 beats estimates, reflecting disciplined expense management

* Net income for Q3 rises to $2.3 mln, reversing a loss from last year

Outlook

* HireQuest ( HQI ) focuses on expanding geographic footprint and leveraging business model

* Company sees improvement in temporary and day labor staffing despite macroeconomic uncertainty

Result Drivers

* FRANCHISE MODEL STRENGTH - Despite a challenging hiring environment, HireQuest's ( HQI ) franchise model supported profitability, according to CEO Rick Hermanns

* TEMPORARY STAFFING RESILIENCE - Temporary and day labor staffing showed bright spots amid macroeconomic uncertainty

* WORKERS COMPENSATION BENEFIT - Significant reduction in workers' compensation expenses contributed to improved net income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $8.50 $8.11

Revenue mln mln (2

Analysts

)

Q3 Beat $4.70 $3.80

Adjusted mln mln (2

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the employment services peer group is "buy."

* Wall Street's median 12-month price target for Hirequest Inc ( HQI ) is $14.00, about 38.2% above its November 5 closing price of $8.65

* The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)