Robert Half International Inc.
), a leading global staffing and risk consulting services provider,
reported solid fourth quarter earnings of $42.6 million or 30 cents
a share, up considerably from $24.8 million or 17 cents a share in
the year-earlier quarter. Earnings per share, however, lagged the
Zacks Consensus Estimate of 31 cents.
In fiscal 2011, Robert Half posted more than doubled net income
of $149.9 million or $1.04 per share from the prior-year net income
of $66.1 million or 44 cents per share. Earnings per share missed
the Zacks Consensus Estimate of $1.05 per share.
Profits were primarily driven by continued demand for
professional staffing and Protiviti. Further, Robert Half
registered sequential as well as year-over-year revenue growth
across all its business segments in the reported quarter.
Besides revenue, earnings also experienced robust growth owing
to the strong demand of personnel in the technology and accounting
Quarter in Detail
During the quarter, Robert Half's total revenue increased 14.3%
to $973.5 million compared with $851.6 million in the year-ago
period. In fiscal 2011, the company generated $3.78 billion
revenues, up 18.9% from $3.18 billion reported in fiscal 2010.
Robert Half noted that the volatile currency markets impacted
the revenue trends during the quarter.
The overall gross profit was $387.3 million or 39.8% of the
total revenue in the fourth quarter of 2011 as against $326.9
million or 38.4% of revenues in the prior-year quarter. Gross
profit in the fiscal 2011 was $1.49 billion or 39.4% of revenues as
compared to $1.19 billion or 37.6% of revenues in the prior-year
Operating income increased 67.1% to $72.2 million in the quarter
from $43.2 million in the comparable quarter last year. In fiscal
2011, operating income more than doubled to $250.2 million from
$115.2 million in 2010.
All the six segments of the company reported positive revenue
growth in the fourth quarter as well as in the fiscal 2011. Revenue
at Accountemps increased 14.0% to $363.8 million, while the same
for Office Team surged 12.4% to $195.9 million in the quarter.
Revenue at Robert Half Technology expanded to $113.0 million from
$92.1 million and Robert Half Management Resources revenue shot up
13.1% to $116.6 million from $103.1 million. Robert Half Finance
and Accounting and Protiviti division revenues jumped 26.1% and
5.5% to $74.8 million and $109.4 million, respectively, in the
In fiscal 2011, revenues at Accountemps increased 15.7% to $1.41
billion, while the same for Office Team surged 20.3% to $757.1
million in the quarter. Revenue at Robert Half Technology expanded
to $428.5 million from $336.3 million and Robert Half Management
Resources revenue shot up 18.6% to $459.6 million from $387.4
million. Robert Half Finance and Accounting and Protiviti division
revenues jumped 36.6% and 9.9% to $302.2 million and $423.8
million, respectively, in the quarter.
Robert Half had cash and cash equivalents of $279.3 million in
the year 2011. Accounts receivable were $493.3 million at the end
of the year, while current liabilities amounted to $473.0
In the fourth quarter, Robert Half paid its stockholders a cash
dividend of 14 cents at a cost of $20 million. The company also
repurchased 300,000 shares for a total of $7.5 million, out of the
remaining 6.1 million shares under the board approved stock
For the first quarter of 2012, the company expects its revenue
to come in the range of $960 million to $1.01 billion, while it
expects its earnings to come in the range of 25 to 30 cents per
Based in Menlo Park, California, Robert Half provides staffing
and risk consulting services in North America, South America,
Europe, Asia, and Australia. Robert Half, primarily competes with
). It currently has a Zacks #3 Rank, which implies a short-term
Hold rating on the stock. Over the long-term, we hold a Neutral
rating on the stock.
MANPOWER INC WI (
): Free Stock Analysis Report
ROBT HALF INTL (
): Free Stock Analysis Report
To read this article on Zacks.com click here.