Overview

* HireQuest ( HQI ) Q2 revenue falls 12% yr/yr, missing analyst expectations, per LSEG data

* Adjusted EBITDA for Q2 beats consensus despite staffing market softness

Outlook

* Company to focus on controlling expenses and pursuing M&A opportunities

* Company aims to benefit from operating leverage when demand returns

Result Drivers

* STAFFING MARKET SOFTNESS - HireQuest ( HQI ) cites prolonged softness in the staffing market as a key factor affecting Q2 results

* FRANCHISE MODEL - Unique franchise model positions HireQuest ( HQI ) for operating leverage when demand returns

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $7.60 $7.67

Revenue mln mln (2

Analysts

)

Q2 Beat $3.30 $3.21

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 30.2% above its August 6 closing price of $9.77

* The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(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.)