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Robert Half Inc. RHI reported worse-than-expected first-quarter financial results on Wednesday.Robert Half posted quarterly earnings of 17 cents per share, missing market estimates of 36 cents per share. The company's quarterly sales came in at $1.35 billion missing estimates of $1.41 billion.“For the first quarter of 2025, global enterprise revenues were $1.352 billion, down 8 percent from last year’s first quarter on a reported basis, and down 6 percent on an adjusted basis. Business confidence levels mod ...

Core Insights - Robert Half International Inc. (RHI) reported first-quarter 2025 results that were narrower than expected, with earnings of 17 cents per share missing consensus by 52.8% and declining 72.1% year over year. Revenues of $1.35 billion also lagged consensus by 3.4% and decreased 8.4% year over year [1] Group 1: Financial Performance - Talent Solutions revenues were $875.3 million, down 11% year over year and below the estimate of $914.2 million. U.S. Talent Solutions revenues were $676 million, down 10% year over year, while non-U.S. revenues decreased 15% to $199 million [2] - Protiviti revenues were $477 million, up 5% year over year but below the expectation of $503.1 million. U.S. Protiviti revenues increased 4% to $387 million, and non-U.S. revenues rose 8% to $90 million. Currency exchange rate movements negatively impacted revenues by $12 million [3] - Adjusted gross profit was $495 million, down 13.3% year over year, with an adjusted gross profit margin of 36.6%, declining 210 basis points year over year [4] Group 2: Balance Sheet and Cash Flow - The company ended the quarter with cash and cash equivalents of $342.5 million, down from $541 million in the first quarter of 2024. Operating cash was $59 million, and capital expenditures were $12.4 million. RHI paid out $61 million in dividends [5] Group 3: Future Guidance - For the second quarter of 2025, RHI expects revenues between $1.31 billion and $1.41 billion, with the midpoint of $1.36 billion below the current Zacks Consensus Estimate of $1.44 billion. EPS is expected to be between 36 cents and 46 cents, while the consensus estimate is 62 cents [6] - The company anticipates 63.2 billing days in the second quarter of 2025, with capital expenditures projected between $15 million and $25 million. For the full year, capital expenditures are expected to be $75 million to $95 million, with an estimated tax rate between 31% and 33% [7]

Core Insights - Robert Half (RHI) reported a revenue of $1.35 billion for the quarter ended March 2025, reflecting a year-over-year decline of 8.4% and an EPS of $0.17 compared to $0.61 a year ago, indicating significant underperformance [1] - The reported revenue was 3.38% lower than the Zacks Consensus Estimate of $1.4 billion, and the EPS fell short by 52.78% compared to the consensus estimate of $0.36 [1] Revenue Performance - Total contract talent solutions revenue was $763.21 million, missing the average estimate of $802.83 million by three analysts, representing a year-over-year decline of 14% [4] - Contract talent solutions in Finance & Accounting generated $562.93 million, below the estimated $575.43 million, marking a year-over-year decrease of 12.3% [4] - Administrative and customer support contract talent solutions revenue was $165.63 million, falling short of the $179.17 million estimate, with a year-over-year decline of 17.2% [4] - Protiviti service revenues were $476.61 million, slightly below the estimate of $494.69 million, but showed a year-over-year increase of 2.7% [4] - Permanent placement talent solutions revenue was $112.09 million, below the estimate of $115.47 million, reflecting a year-over-year decline of 10.2% [4] - Technology contract talent solutions revenue was $152.54 million, missing the estimate of $157.85 million, with a year-over-year decline of 3.4% [4] Gross Margin Analysis - Gross margin for contract talent solutions was $296.93 million, below the average estimate of $316.09 million from two analysts [4] - Gross margin for Protiviti was $90.25 million, compared to the average estimate of $105.29 million from two analysts [4] - Gross margin for permanent placement talent solutions was $111.86 million, below the estimate of $117.42 million from two analysts [4] Stock Performance - Robert Half's shares have returned -13.5% over the past month, underperforming the Zacks S&P 500 composite's -6.6% change, and the stock currently holds a Zacks Rank 5 (Strong Sell) [3]

Robert Half (RHI) came out with quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.61 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of -52.78%. A quarter ago, it was expected that this staffing firm would post earnings of $0.54 per share when it actually produced earnings of $0.53, delivering a surprise of -1.85%. Over the last four quarters, the com ...

Core Insights - Robert Half Inc. reported a decline in revenues and net income for the first quarter of 2025 compared to the same period in 2024, with revenues of $1.352 billion, down 8% year-over-year, and net income of $17 million, down 73% year-over-year [1][2]. Financial Performance - For Q1 2025, net income was $17 million, or $0.17 per share, compared to $64 million, or $0.61 per share, in Q1 2024 [1][2]. - Total revenues for Q1 2025 were $1.352 billion, down from $1.476 billion in Q1 2024, representing an 8% decrease on a reported basis and a 6% decrease on an adjusted basis [2][13]. Operational Insights - The decline in business was attributed to moderated client confidence due to economic uncertainties, which elongated decision cycles and subdued hiring activity [2]. - The company remains optimistic about capitalizing on emerging opportunities through its strong brand, technology, and unique business model that includes both professional staffing and consulting services [2]. Employee Engagement and Recognition - Robert Half has received significant recognition in 2025, including being named one of America's Most Innovative Companies by Fortune and one of America's Best Large Employers by Forbes [3]. - High levels of employee engagement have led to both Robert Half and Protiviti being recognized as two of Fortune's 100 Best Companies to Work For [3]. Service Revenue Breakdown - Service revenues for contract talent solutions were $763.2 million in Q1 2025, down from $887.1 million in Q1 2024 [13]. - Permanent placement talent solutions generated $112.1 million in Q1 2025, compared to $124.8 million in Q1 2024 [13]. - Protiviti's revenues were $476.6 million in Q1 2025, slightly up from $464.1 million in Q1 2024 [13]. Selected Balance Sheet Information - As of March 31, 2025, cash and cash equivalents were $342.5 million, down from $540.9 million a year earlier [13]. - Accounts receivable decreased to $786.6 million from $861.5 million year-over-year [13]. - Total assets were $2.697 billion, down from $2.890 billion in the previous year [13]. Cash Flow Information - Depreciation for Q1 2025 was $13 million, consistent with $13 million in Q1 2024 [13]. - Capital expenditures were $12.4 million in Q1 2025, compared to $11.8 million in Q1 2024 [13].

Financial Performance - For Q1 2025, Robert Half reported net income of $17 million, or $0.17 per share, on revenues of $1.352 billion, a decrease of 8% from $1.476 billion in Q1 2024[2][3]. - Global enterprise revenues decreased by 8% on a reported basis and 6% on an adjusted basis compared to the previous year, attributed to moderated business confidence amid economic uncertainty[3]. - Service revenues for contract talent solutions totaled $763.2 million, down from $887.1 million in Q1 2024, with finance and accounting services declining from $641.9 million to $562.9 million[17]. - Gross margin for Q1 2025 was $499.0 million, compared to $562.8 million in Q1 2024, reflecting a decrease in profitability[15]. - Total stockholders' equity decreased to $1.313 billion from $1.519 billion year-over-year, indicating a decline in the company's net worth[18]. - Cash and cash equivalents fell to $342.5 million from $540.9 million in the previous year, highlighting liquidity challenges[18]. - For the three months ended March 31, 2025, total revenue reported was $499,045,000, a decrease of 11.3% from $562,797,000 in the same period of 2024[25]. - The gross margin for total talent solutions was 46.7% in 2025, down from 47.0% in 2024, while Protiviti's gross margin decreased from 20.7% to 18.1%[25]. - Selling, General and Administrative Expenses (SG&A) totaled $460,163,000 in 2025, a decrease of 11.8% from $521,899,000 in 2024[28]. - Adjusted operating income for total talent solutions was $10,315,000 in 2025, significantly lower than $61,973,000 in 2024, reflecting a decrease of 83.4%[30]. - The company reported an adjusted gross margin of 36.6% for total revenue in 2025, compared to 38.7% in 2024[25]. - Contract talent solutions generated $20,721,000 in operating income for 2025, an increase from $18,982,000 in 2024, indicating a growth of 9.2%[30]. - The adjusted SG&A expenses for total talent solutions were $398,479,000 in 2025, down from $413,145,000 in 2024, reflecting a decrease of 3.5%[28]. - Protiviti's operating income decreased to $12,435,000 in 2025 from $13,944,000 in 2024, a decline of 10.8%[30]. - The company’s total talent solutions revenue was $408,794,000 in 2025, down from $475,118,000 in 2024, representing a decrease of 14.0%[25]. - The adjusted operating income margin for total revenue was 1.4% in 2025, compared to 5.7% in 2024, indicating a significant decline in profitability[30]. Market Trends and Challenges - Forward-looking statements indicate potential risks including economic conditions, competition, and regulatory changes that may impact future performance[9][10]. - Total revenue growth for Q4 2023 reported at -14.7%, with an adjusted growth rate of -15.2%[39]. - Finance and accounting segment reported a year-over-year decline of -17.2% in Q4 2023, adjusted to -17.8%[39]. - Technology segment experienced a significant decline of -21.7% in Q4 2023, adjusted to -21.8%[39]. - Permanent placement talent solutions saw a decline of -22.0% in Q4 2023, adjusted to -22.6%[39]. - Protiviti segment reported a year-over-year decline of -7.1% in Q4 2023, adjusted to -7.5%[39]. - Total contract talent solutions reported a decline of -17.2% in Q4 2023, adjusted to -17.7%[39]. - Administrative and customer support segment reported a decline of -18.7% in Q4 2023, adjusted to -19.4%[39]. - The billing days impact on revenue growth rates was minimal, with adjustments ranging from 0.1% to 1.4% across segments[39]. - Currency impact on revenue growth rates varied, with adjustments from -0.9% to 1.0% across segments[39]. - Future outlook indicates continued challenges, with expected declines in various segments for Q1 2024[39]. - In Q4 2023, the year-over-year revenue growth for total talent solutions in the United States was reported at -16.8% as reported and -16.7% as adjusted[41]. - The company anticipates continued challenges in revenue growth, with projections indicating a decline of -10.3% for total talent solutions in the United States by Q1 2025[41]. Company Strategy and Recognition - The company emphasized its strong positioning to capitalize on emerging opportunities despite the uncertain outlook, leveraging its brand, technology, and business model[3]. - Robert Half was recognized as one of America's Most Innovative Companies by Fortune and one of America's Best Large Employers by Forbes in 2025[4]. - The company plans to continue focusing on its dual model of professional staffing and business consulting services to meet client needs[3]. - The overall trend indicates a gradual improvement in the Protiviti segment, contrasting with the declining performance in other talent solutions[41]. - The Protiviti segment in the United States showed a significant recovery with a reported growth of 9.3% in Q3 2024 and 6.6% in Q4 2024[41]. - For international contract talent solutions, the year-over-year revenue growth was -4.4% in Q4 2023, worsening to -20.7% by Q1 2025 as reported[43]. - The permanent placement talent solutions in the international segment reported a decline of -20.6% in Q4 2023, with an adjusted figure of -22.8% in Q1 2024[43]. - The total talent solutions in the international market reported a year-over-year decline of -6.9% in Q4 2023, adjusting to -9.8% in Q1 2025[43]. - The billing days impact on total talent solutions in the United States was minimal, with a maximum positive impact of 1.1 days in Q1 2025[41]. - Currency impacts were noted in the international segment, with a negative impact of -3.2% in Q4 2023 for contract talent solutions[43]. - The adjusted revenue growth for Protiviti in the international segment showed a recovery with a growth of 4.4% in Q1 2025[43].

Core Viewpoint - Analysts project that Robert Half (RHI) will report quarterly earnings of $0.36 per share, reflecting a 41% decline year over year, with revenues expected to reach $1.4 billion, down 5.2% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 3.7% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Service Revenues- Contract talent solutions- Administrative and customer support' to be $179.17 million, a decrease of 10.4% year over year [5]. - 'Service Revenues- Total contract talent solutions' is expected to be $802.83 million, indicating a decline of 9.5% from the prior-year quarter [5]. - 'Service Revenues- Contract talent solutions- Technology' is projected at $157.85 million, showing a slight decrease of 0.1% year over year [6]. - 'Service Revenues- Protiviti' is estimated to reach $494.69 million, reflecting a growth of 6.6% year over year [6]. - 'Service Revenues- Contract talent solutions- Finance & Accounting' is expected to be $575.43 million, down 10.4% from the prior-year quarter [7]. - 'Service Revenues- Permanent placement talent solutions' is projected at $115.47 million, indicating a decline of 7.5% year over year [7]. Gross Margin Estimates - 'Gross Margin- Contract talent solutions' is forecasted to be $316.09 million, compared to $350.57 million reported in the same quarter last year [8]. - The consensus for 'Gross Margin- Protiviti' stands at $105.29 million, up from $87.68 million year over year [8]. - 'Gross Margin- Permanent placement talent solutions' is expected to reach $117.42 million, down from $124.55 million reported in the same quarter last year [9]. Stock Performance - Robert Half shares have decreased by 17.8% in the past month, contrasting with an 8.9% decline in the Zacks S&P 500 composite [9]. - With a Zacks Rank 5 (Strong Sell), RHI is anticipated to underperform the overall market in the near future [9].

We all know that the level of uncertainty is through the roof right now. With a constantly changing landscape of what to expect when looking forward to domestic and global macroeconomic growth, formulating any rational expectation of what to expect forMy experience stems from the hedge fund industry beginning in the mid-90's, working as a Portfolio Manager, Domestic Equity Analyst and Trader. I was the Portfolio Manager of a domestic Long/Short Equity product with gross assets that peaked over 1 Billion dol ...

Core Insights - The class of 2025 is entering a job market characterized by rapid change and uncertainty, presenting unique challenges for early-career professionals [2] Group 1: Challenges Faced by Early-Career Professionals - 45% of respondents reported a lack of mentorship opportunities [6] - 39% struggled with prioritizing tasks and managing workloads [6] - 36% felt unprepared due to inadequate onboarding and training [6] - 35% entered the workforce without internship or relevant work experience [6] - 34% believed they could not make an immediate impact with their existing skills [6] Group 2: Recommendations for Career Success - Pursuing internships, apprenticeship programs, or contract work can provide valuable hands-on experience and enhance skill sets [7] - Building relationships with experienced professionals through networking can offer guidance and boost confidence [7] - Engaging in continuous learning and seeking professional development opportunities can increase marketability [7] - Effective communication and understanding workplace expectations can improve productivity and foster strong working relationships [7]