Leading staffing firm
Robert Half International Inc.
) reported second quarter 2013 earnings of 46 cents, ahead of the
prior-year quarter adjusted earnings of 38 cents per share by
21.1%. Earnings also beat the Zacks Consensus Estimate by 7%.
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, information technology staffing and in
Protiviti operations. In fact, the company's earnings have now
grown more than 15% year over year for 13 straight quarters
driven by growing demand for skilled workforce and consulting
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 the company's
clients. A gradual improvement in economic conditions and job
market in the U.S. 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 increased 3.4% year over year to
$1.06 billion in the second quarter and beat the Zacks Consensus
Estimate of $1.05 billion by 1.6%. On a constant currency basis,
revenues increased 1% year over year on the back of rising global
staffing revenues. While revenues in the U.S. grew 4% in the
second quarter, international staffing revenues declined 7% on a
constant currency basis.
Gross profit was $432.1 million in the reported quarter, up
4.0% year over year. Gross margin expanded 20 basis points to
40.6% in the second quarter as against 40.4% in the prior-year
quarter owing to higher sales. Operating income increased 39.9%
to $100.8 million in the quarter. Operating margin increased 250
basis points to 9.5% in the second quarter of 2013 on the back of
higher gross margins, lower operating expenses and solid
Revenues at Accountemps declined 0.7%, while revenues at
Robert Half Management Resources decreased 1.2%. Revenues
increased 2.3% and 1.4% at Office Team and at Robert Half Finance
and Accounting, respectively. Revenues grew 10.2% at Robert Half
Technology, while revenues at the Protiviti division jumped 18.7%
from the prior-year quarter.
Robert Half had cash and cash equivalents of $246.9 million at
the end of the second quarter versus $22.4 million at the end of
first quarter 2013. Capital expenditure was $11 million as
against $8 million in the prior quarter of 2013.
Robert Half paid its stockholders a cash dividend of 16 cents
per share on Jun 12 at a total cost of $22 million. The company
also repurchased 1.2 million shares for a total of $39 million
during the quarter. There are approximately 9.4 million shares
remaining under the board approved stock repurchase plan.
Robert Half carries a Zacks Rank #2 (Hold). Other stocks in
the business services sector include
On Assignment Inc
Amn Healthcare Services Inc
), all of them holding a Zacks Rank #1 (Strong Buy).
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ROBT HALF INTL (RHI): Free Stock Analysis
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