Robert Half International Inc
) hit a new 52-week high of $37.59 on Mar 28 and eventually
closed at $37.53, generating a return of approximately 15.8%
year-to-date. Robert Half's shares have been riding high since it
reported solid fourth quarter results on Jan 29.
This staffing company beat its previous 52-week high of $37.15
attained on Feb 19. The company's long-term estimated EPS growth
rate is 17.75%. Average volume of shares traded over the last
three months came in at approximately 932K.
Factors Driving Momentum
Strong revenue growth, solid financial position with
reasonable debt, impressive earnings record boosted by continued
demand for specialized staffing and consulting services,
particularly in the U.S. continue to be Robert Half's
Robert Half has witnessed strong revenue growth in each of its
business segments, which drove the company's strong fourth
quarter 2012 results. Earnings of 42 cents increased 40% from the
year-earlier quarter and also beat the Zacks Consensus Estimate
by 2.4%. Moreover, the company's earnings have now grown more
than 20% year over year for 11 straight quarters.
Gross margin expanded 50 basis points to 40.3% in the quarter
while operating margin increased 200 basis points to 9.4% on the
back of higher gross margins, lower operating expenses and solid
results of the company's wholly-owned subsidiary, Protiviti.
Robert Half is scheduled to report its first quarter 2013
earnings this month. We believe that the strong demand for
specialized staffing and consulting services, particularly in the
U.S. will continue to drive profits for Robert Half in the
upcoming quarter. Further, the improving global economic
condition will boost the demand for the company's temporary and
permanent staffing services and risk consulting and internal
Protiviti will continue to remain one of the key drivers of
revenue and operating growth and help companies solve problems in
finance, technology, operations, governance, risk and internal
audit. Protiviti's purchase of privately-held SusQtech Inc. in
late December is also expected to meet the growing demand for
skilled workforce as well as provide its key clients with
software consulting services.
Other Stocks to Consider
Robert Half currently carries a Zacks Rank #3 (Hold). Stocks
that are performing well and are worth considering in the
business services sector include
AMN Healthcare Services
). While Manpower and Startek carry a Zacks Rank #1 (Strong Buy),
AMN Healthcare holds a Zacks Rank #2 (Buy).
AMN HLTHCR SVCS (AHS): Free Stock Analysis
MANPOWER INC WI (MAN): Free Stock Analysis
ROBT HALF INTL (RHI): Free Stock Analysis
STARTEK INC (SRT): Free Stock Analysis Report
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