Company Overview - Robert Half shares have increased by approximately 2.4% since the last earnings report, underperforming the S&P 500 [1] - The most recent earnings report indicates a need to analyze important catalysts affecting the stock [1] Earnings Estimates - Fresh estimates for Robert Half have trended downward over the past month, with the consensus estimate shifting down by 26.83% [2] - The overall direction of estimate revisions suggests a negative outlook for the stock [4] VGM Scores - Robert Half has a subpar Growth Score of D and a Momentum Score of F, placing it in the bottom 40% for value investment strategy [3] - The aggregate VGM Score for the stock is D, indicating a lack of strong performance across multiple investment strategies [3] Market Outlook - The downward trend in estimates has led to a Zacks Rank of 5 (Strong Sell) for Robert Half, suggesting expectations of below-average returns in the coming months [4] Industry Comparison - Robert Half is part of the Zacks Staffing Firms industry, where competitor ManpowerGroup has seen a 2.8% gain over the past month [5] - ManpowerGroup reported revenues of $4.09 billion for the last quarter, reflecting a year-over-year decline of 7.1% [5] - ManpowerGroup's expected earnings for the current quarter are $0.79 per share, indicating a year-over-year decrease of 39.2% [6]

Core Insights - Robert Half has won two Stevie Awards at the 23rd Annual American Business Awards, recognizing its achievements in artificial intelligence and technology leadership [1][3] Group 1: Awards and Recognition - Robert Half received the award for Best Artificial Intelligence/Machine Learning Solution for its AI Recommended Clients (ARC) tool, which helps talent solutions professionals identify and engage clients effectively [2] - James Johnson, the executive vice president and chief technology officer, was recognized as Technology Executive of the Year for his role in advancing the company's innovation strategy [2][3] - The American Business Awards received over 3,600 nominations from various organizations, highlighting the competitive nature of the awards [3] Group 2: Company Overview - Robert Half is the world's first and largest specialized talent solutions and business consulting firm, providing services in finance, accounting, technology, marketing, legal, and administrative support [5] - The company has also been recognized as one of Fortune's 2025 America's Most Innovative Companies and a winner of the 2025 CIO 100 Award [4]

Revenue Performance - Service revenues for Q1 2025 were $1.35 billion, a decrease of 8.4% from $1.48 billion in Q1 2024[90]. - Contract talent solutions revenues decreased by 14.0% to $763 million in Q1 2025, driven by a 16.2% decrease in hours worked[105]. - Permanent placement talent solutions revenues were $112 million, down 10.2% from $125 million in Q1 2024, with an 11.4% decrease in placements[107]. - Protiviti revenues increased by 2.7% to $477 million in Q1 2025, supported by a 3.4% increase in billable hours[108]. - The company's reported revenue growth for contract talent solutions was -14.0% globally, -11.8% in the United States, and -20.7% internationally for the three months ended March 31, 2025[109]. - The Company reported a decrease in international revenues by 13.6% to $289 million for the three months ended March 31, 2025[104]. Income and Expenses - Net income for Q1 2025 was $17 million, with diluted net income per share at $0.17, reduced by $0.13 per share due to one-time charges[90]. - Selling, general and administrative expenses were reported at $460 million for Q1 2025, a decrease of 11.8% from $522 million in Q1 2024, representing 34.0% of revenues[115]. - Adjusted selling, general and administrative expenses for contract talent solutions were $290 million, with a percentage of revenue at 38.0%, up from 33.9% in Q1 2024[120]. - The company's reported operating income for Q1 2025 was $39 million, down 4.9% from $41 million in Q1 2024, with an operating income margin of 2.9%[122]. - Adjusted operating income for Q1 2025 was $19 million, a decrease of 77.8% from $84 million in Q1 2024, resulting in a margin of 1.4%[122]. Gross Margin - Gross margin dollars decreased by 11.3% to $499 million for the three months ended March 31, 2025, down from $563 million in the same period of 2024[109]. - Gross margin for contract talent solutions was $297 million, a decrease of 15.3% from $351 million year-over-year, with a gross margin percentage of 38.9% in Q1 2025, down from 39.5% in Q1 2024[111]. - The overall adjusted gross margin for the company was 36.6% in Q1 2025, down from 38.7% in Q1 2024[114]. - Protiviti's gross margin dollars increased by 2.9% to $90 million for Q1 2025, maintaining a gross margin percentage of 18.9%[113]. - The company experienced a decrease in gross margin percentage for Protiviti, adjusted to 18.1% in Q1 2025 from 20.7% in Q1 2024, primarily due to one-time charges of $8 million[113]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $342 million in Q1 2025 from $541 million in Q1 2024, with net cash used in operating activities of $59 million in Q1 2025 compared to $16 million in Q1 2024[127][128]. - The company anticipates that internally generated cash will be sufficient to support its working capital needs and obligations on both a short-term and long-term basis[133]. - The Company has an unsecured revolving credit facility of $100 million, with no borrowings as of March 31, 2025[135]. - As of March 31, 2025, the Company had $342 million in cash and cash equivalents and $787 million in net accounts receivable, indicating strong liquidity[133]. Economic and Market Conditions - Economic uncertainty has led to elongated decision cycles and subdued hiring activity, impacting overall performance[89]. - U.S. unemployment rate stands at 4.2%, with a lower rate of 2.6% for college graduates, indicating a resilient labor market[91]. - The Company is well-positioned to capitalize on emerging opportunities despite the uncertain economic outlook[92]. Investments and Future Outlook - The Company continues to invest in technology and AI to enhance client and candidate experiences[93]. - The company expects capital expenditures for 2025 to range from $75 million to $95 million, with $45 million to $55 million allocated for software initiatives and technology infrastructure[130]. - The provision for income taxes was 22.1% for Q1 2025, down from 29.8% in Q1 2024, primarily due to accelerated timing of certain tax credits[125]. - The company repurchased $50 million in common stock during Q1 2025, compared to $86 million in Q1 2024[131].

Core Viewpoint - The sentiment surrounding Robert Half Inc. (NYSE: RHI) is predominantly negative, with 8 out of the last 9 articles rated as Sell and the remaining one as Hold, indicating a lack of confidence in the company's stock performance [1]. Group 1 - The majority of recent analyses on Robert Half Inc. suggest a bearish outlook, reflecting concerns about the company's future performance [1]. - The company has been under scrutiny, with analysts expressing skepticism about its growth prospects and overall market position [1].

Core Insights - The class of 2025 faces significant challenges entering the workforce, as highlighted by a survey conducted by Robert Half, which included nearly 1,000 U.S. workers [1][2] Challenges Faced by Early-Career Professionals - Limited mentorship opportunities: 45% of workers reported lacking a mentor or peer guidance early in their careers [4] - Support managing workloads: 39% struggled with prioritizing tasks [4] - Insufficient onboarding: 36% felt unprepared due to inadequate training from employers [4] - Lack of internship experience: 34% entered the workforce without relevant internship or work experience [4] - Skills gap: 34% felt they could not make an immediate impact with their existing skills [4] Strategies for Success - Insights from Brandi Britton, executive director at Robert Half, emphasize the importance of standing out during job searches and identifying in-demand roles for early-career professionals [2]

Core Insights - A significant shortage of skilled technology talent is impeding companies' ability to achieve strategic goals and modernize operations, with 74% of technology leaders planning to hire for growth but 87% facing challenges in finding qualified candidates [1][3] Group 1: Priorities and Challenges - The top priorities for technology leaders in 2025 include addressing technical debt, modernizing IT operations, and driving innovation, necessitating a strategic hiring and development plan [2][3] - Technical debt is identified as a major barrier by 55% of tech leaders, highlighting the need for specialized skills in areas like AI, cloud architecture, and cybersecurity [3] - 76% of tech leaders report skills gaps within their teams, particularly in digital transformation and enterprise resource planning (ERP), with 75% expecting demand for such skills to grow in 2025 [3][4] Group 2: ERP and Digital Transformation - 92% of tech leaders face challenges in hiring for ERP-related roles, with evolving ERP platforms requiring professionals skilled in dynamic, cloud-based solutions [3][4] - The integration of intelligent and real-time ERP systems is essential for modern IT infrastructure, yet finding qualified professionals remains a significant challenge [3] Group 3: Key Areas of Focus - Key focus areas for technology leaders include cybersecurity, AI and machine learning, technology modernization, and cloud initiatives, which are critical for improving productivity and supporting agile operations [4][5]

I’m a fundamental, valuation-driven investor with a strong focus on identifying businesses that have the potential to scale over time and unlock massive terminal value. My investment approach centers around understanding the core economics of a business—its competitive moat, unit economics, reinvestment runway, and management quality—and how those factors translate into long-term free cash flow generation and shareholder value creation. I focus on fundamental research, and I tend to focus on sectors with st ...

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]