Shares of Robert Half International Inc (RHI) reached a 52-week high of $59.45 on Dec 19, 2014 as it sees a consistent increase in staffing demand. Shares of this staffing firm closed at $58.65 on Dec 19.
We should note that shares of the company have been gaining momentum ever since it delivered better-than-expected earnings and revenues in the third quarter of 2014, reported on Oct 22.
Growth Driver
Robert Half delivered earnings of 63 cents per share in the third quarter, which increased 31.3% year over year and also beat the Zacks Consensus Estimate by 6.8%. Earnings also exceeded management’s guidance range of 55 cents to 60 cents per share, driven by solid demand for staffing and consulting services. In fact, the company’s earnings have now grown in double digits for 18 consecutive quarters on a year-over-year basis.
Robert Half's revenues are also growing since past many quarters. In the third quarter, total revenue grew 14% year over year to $1.22 billion, as demand for staffing and consulting services accelerated, with all lines of business growing in double-digits on a year-over-year basis. On a constant currency basis, revenues grew 13%. Revenues were at the higher end of management’s guidance range of $1.77-$1.22 billion. It also beat the Zacks Consensus Estimate by 2.1%.
We believe the strong revenues are coming from broad-based and increasing demand for the company’s professional staffing services, particularly in the U.S. With the current improvement in the labor market, the company expects to generate accelerated revenues in the near term.
Robert Half’s subsidiary Protiviti is also one of the key drivers of revenues and operating performance. It helps companies solve problems in finance, technology, operations, governance, risk and internal audit. The company expects the momentum to continue in the upcoming quarters with an improvement in economy this year.
Robert Half’s international operations are also improving, most notably in Europe, owing to growing demand for permanent placement services.
Robert Half has a Zacks Rank #2 (Buy).
Other stocks in the staffing industry worth considering include CTPartners Executive Search Inc. (CTP), Cross Country Healthcare, Inc. (CCRN) and On Assignment Inc. (ASGN). All of them sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment