Robert Half (RHI) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

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]