Truist analyst Tobey Sommer has adjusted the price target for Robert Half International Inc. (RHI, Financial), revising it from $60 to $55 while maintaining a Buy rating on the stock. This update follows the company's recent first-quarter results and its cautious outlook for the second quarter.
Robert Half's guidance for the upcoming quarter fell short of market expectations due to waning optimism among small and medium-sized business (SMB) clients. This decline in confidence is attributed to ongoing uncertainties related to trade and policy shifts, which have left businesses hesitant about immediate investments and expansion.
Despite these current challenges, Truist maintains a positive long-term view, suggesting that Robert Half is well-positioned to benefit early on when macroeconomic conditions begin to stabilize. The firm's optimism rests on the belief that Robert Half's business model will gain traction as broader economic uncertainties resolve.
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 45.05% from the current price of $40.56. 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 69.75% from the current price of $40.56. 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.
