Leading staffing firm
Robert Half International Inc.
) reported third quarter 2013 earnings of 48 cents, ahead of the
prior-year quarter adjusted earnings of 41 cents per share by
17.1%. Earnings were in-line with the Zacks Consensus
Despite sluggish performance in the international markets,
Robert Half witnessed strong earnings growth driven by solid
demand for skilled professionals in the U.S., particularly in
permanent placement, technology staffing and in Protiviti
operations. In fact, the company's earnings have now grown more
than 15% year over year for 14 straight quarters, driven by
growing demand for skilled workforce and consulting services.
We believe that the demand for the company's services, in
particular its staffing services, is highly dependent on the
state of the economy and the staffing needs of its clients. A
gradual improvement in economic conditions and the U.S. job
market has led to a rise in the demand for the company's
specialized staffing and consulting services.
Quarter in Detail
Robert Half's total revenue was in-line with the Zacks
Consensus Estimate and increased 4.9% year over year to $1.08
billion in the third quarter. Global staffing revenues grew 2.5%
in the quarter. On a constant currency basis, global staffing
revenues increased 1.3% year over year, with a 4% increase in the
U.S. and a 6% decline in international staffing revenues in the
Gross profit was $437.5 million in the reported quarter, up
5.4% year over year. Gross margin expanded 50 basis points to
40.7% in the third quarter as against 40.2% in the prior-year
quarter owing to higher sales. Operating income increased 10.3%
to $103.9 million in the quarter. Operating margin increased 60
basis points to 9.7% in the third quarter of 2013 on the back of
higher gross margins and solid Protiviti results.
Revenues at Accountemps declined 0.8%, while revenues at
Robert Half Management Resources decreased 0.2%. Revenues
increased 2.5% and 7.9% at Office Team and at Robert Half Finance
and Accounting, respectively. Revenues grew 11.8% at Robert Half
Technology, and 16.3% at the Protiviti division from the
Robert Half had cash and cash equivalents of $279.7 million at
the end of the third quarter versus $246.9 million at the end of
second quarter 2013. Capital expenditure was $11.8 million in the
third quarter as against $11 million in the prior quarter.
Robert Half paid its stockholders a cash dividend of 16 cents
per share on Sep 16, amounting to a total of $22 million. The
company also repurchased 0.8 million shares for a total of $28
million during the quarter. There are approximately 8.6 million
shares remaining under the board approved stock repurchase
Robert Half carries a Zacks Rank #1 (Strong Buy). Other stocks
in the business services sector, worth considering include
On Assignment Inc
), all of them holding a Zacks Rank #1.
ON ASSIGNMENT (ASGN): Free Stock Analysis
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MANPOWER INC WI (MAN): Free Stock Analysis
ROBT HALF INTL (RHI): Free Stock Analysis
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