Barclays has revised its price target for Robert Half (RHI, Financial), reducing it from $50 to $45, while maintaining an Equal Weight rating on the company's shares. This decision comes in the wake of Robert Half's first-quarter earnings falling short of expectations, even after accounting for restructuring charges.
Analysts highlighted that Robert Half has attributed the underperformance to a growing macroeconomic uncertainty, which has led employers to adopt a cautious 'wait and see' approach. This environment continues to challenge the company's business prospects and was a significant factor in the adjustment of its stock's price target.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Robert Half Inc (RHI, Financial) is $58.83 with a high estimate of $80.00 and a low estimate of $46.00. The average target implies an upside of 26.66% from the current price of $46.45. More detailed estimate data can be found on the Robert Half Inc (RHI) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Robert Half Inc's (RHI, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Robert Half Inc (RHI, Financial) in one year is $68.85, suggesting a upside of 48.22% from the current price of $46.45. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Robert Half Inc (RHI) Summary page.
RHI Key Business Developments
Release Date: April 23, 2025
- Global Enterprise Revenues: $1.352 billion, down 8% year-over-year on a reported basis, down 6% on an adjusted basis.
- Net Income Per Share: $0.17, compared to $0.61 in the prior year.
- Cash Flow Used in Operations: $59 million.
- Cash Dividend: $0.59 per share, total cash outlay of $61 million.
- Share Repurchase: Approximately 650,000 shares acquired for $39 million.
- Return on Invested Capital: 5% in the first quarter.
- US Talent Solutions Revenues: $676 million, down 10% year-over-year.
- Non-US Talent Solutions Revenues: $199 million, down 15% year-over-year.
- Protiviti Global Revenues: $477 million, up 5% year-over-year.
- Contract Talent Solutions Gross Margin: 38.9% of applicable revenues, down from 39.5% last year.
- Overall Gross Margin for Talent Solutions: 46.7%, down from 47% last year.
- Protiviti Gross Margin: 18.9% of revenues, unchanged from last year.
- Enterprise SG&A Costs: 34% of global revenues, down from 35.4% last year.
- Operating Income: $39 million; Adjusted Operating Income: $19 million.
- First Quarter Tax Rate: 22%, down from 30% last year.
- Accounts Receivable: $787 million; Days Sales Outstanding: 52.4 days.
- Second Quarter Revenue Guidance: $1.31 billion to $1.41 billion.
- Second Quarter Income Per Share Guidance: $0.36 to $0.46.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Protiviti achieved year-over-year revenue growth for the third consecutive quarter, indicating resilience in a challenging economic environment.
- Robert Half Inc (RHI, Financial) distributed a $0.59 per share cash dividend, marking an 11.3% increase from the previous year, demonstrating a commitment to returning value to shareholders.
- The company has implemented cost-saving measures expected to result in annual savings of $80 million, which will improve profitability levels.
- Contract Talent Solutions bill rates increased by 4.2% compared to the previous year, reflecting strong demand for skilled professionals.
- Robert Half Inc (RHI) has a strong brand and unique business model that positions it well to capitalize on emerging opportunities and support clients' talent and consulting needs.
Negative Points
- Global Enterprise revenues were down 8% from the previous year's first quarter, indicating a decline in business activity.
- Net income per share dropped significantly to $0.17 from $0.61 in the same quarter last year, reflecting reduced profitability.
- Business confidence levels have moderated due to heightened economic uncertainty, leading to elongated decision cycles and subdued hiring activity.
- Cash flow used in operations was $59 million, with cash outflows typically elevated in the first quarter due to annual payment cycles.
- Adjusted gross margin for Protiviti decreased to 18.1% from 20.7% the previous year, impacted by onetime charges related to cost reductions.
