Overview

* Robert Half Q3 revenue of $1.354 bln missed analyst expectations

* Net income for Q3 declined yr/yr due to subdued hiring activity and project starts

* Company sees sequential growth in contract talent revenues in September and October

Outlook

* Robert Half expects Q4 revenue to return to sequential growth on a same-day constant currency basis

* Company sees encouraging trends in contract talent revenues, growing sequentially in September and October

Result Drivers

* CLIENT CAUTION - Subdued hiring activity and project starts due to client and job seeker caution, per CEO M. Keith Waddell

* CONTRACT TALENT REVENUE - Sequential growth in contract talent revenues observed in September and October

* SEQUENTIAL GROWTH EXPECTATION - Co expects sequential revenue growth in Q4 for the first time since Q2 2022

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $1.35 $1.36

Revenue miss* bln bln (8

Analysts

)

Q3 EPS $0.43

Q3 Net $42.91

Income mln

Q3 $63.71

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and 4 "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 Robert Half Inc ( RHI ) is $40.00, about 22.5% above its October 21 closing price of $30.98

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

* Applies to a deviation of less than 1%; not applicable for per-share numbers.

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.)