Robert Half International Inc. (RHI), a leading global staffing and risk consulting services provider, has reported solid second quarter 2010 results.
Robert Half registered net income of $12.2 million or 8 cent a share in the quarter, compared with $5.4 million or 3 cents a share in the earlier year quarter. Earnings per share were in line with the Zacks Consensus Estimate. The year-over-year result benefited from improvement technology staffing, OfficeTeam and Protiviti divisions.
For the next quarter, the company forecasts earnings of 9−14 cents a share. The current Zacks Consensus Estimate of 13 cents remains at the high end of the guidance range.
During the quarter, Robert Half’s total revenue advanced 2.5% to $769.1 million, compared with $749.9 million in year-ago period. The company projects revenues of $770 million−$820 million for the third quarter 2010.
Operating income jumped to $22.3 million in the quarter from $10.0 million in second quarter of 2009.
Segment Details
Revenue at Accountemps and Robert Half Management Resources division decreased to $294.5 million and $93.1 million in the quarter, respectively, compared with $310.9 million and $94.5 million in the prior-year quarter. Revenue at OfficeTeam, Robert Half Technology, Robert Half Finance & Accounting and Protiviti division grew to $150.4 million, $81.8 million, $56.1 million and $93.2 million in the quarter, respectively, compared with $135.7 million, $75.3 million, $43.5 million, and $90.0 million in the prior year quarter.
Financial Update
At quarter end, Robert Half had cash and cash equivalents of $290.0 million compared with $385.8 million in the year-earlier quarter. The company spent $6.1 million in the quarter. The company repurchased shares worth $2.5 million in the quarter.
Our Take
Companies that had rightsized their workforce during the recession have started recruiting again due to the revival of the economy, which benefits Robert Half. The strongest markets are Canada and Australia. Within Europe, inclusive of the UK, the UK and France are somewhat stronger than Belgium and Germany. On the Protiviti side, Australia, China and the UK are the strongest. The company finds huge opportunities internationally compared to the domestic market.
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