Robert Half International Inc. (RHI), a leading global staffing and risk consulting services provider, has once again delivered solid results. The first quarter 2012 earnings went up 89% to 34 cents a share from 18 cents a share reported in the year-earlier quarter.
Earnings per share also surpassed the Zacks Consensus Estimate of 28 cents. The results were driven by top-line growth and continued demand for skilled workforce and consulting services.
Quarter in Detail
During the quarter, Robert Half’s total revenue increased 15.3% to $1.02 billion compared with $880.9 million in the year-ago period. The results also exceeded the Zacks Consensus Revenue Estimate of $990 million.
Robert Half noted that the volatile currency markets impacted the revenue trends by $6 million during the quarter.
Gross profit was $402.1 million in the reported quarter, which climbed 18.9% from the prior-year quarter figure of $338.1 million. Gross margin expanded 120 basis points to 39.6% in the first quarter of 2012 as against 38.4% in the prior-year quarter.
Operating income increased 80.3% to $80.1 million in the quarter from $44.4 million in the comparable quarter last year. Operating margin increased 290 basis points to 7.9% in the first quarter of 2012.
Segment Details
All the six segments of the company reported positive revenue growth in the first quarter of 2012. Revenue at Accountemps increased 16.7% to $385.4 million, while the same for Office Team surged 13.7% to $200.5 million in the quarter.
Revenue at Robert Half Technology expanded 19.8% to $115.6 million and Robert Half Management Resources revenue shot up 15.0% to $128.1 million. Robert Half Finance and Accounting and Protiviti division revenues jumped 22.6% and 4.4% to $82.9 million and $102.9 million, respectively, in the quarter.
Financial Update
Robert Half had cash and cash equivalents of $244.5 million at the end of first quarter of 2012 as against $279.3 million at the end of fourth quarter of 2011. Capital expenditure was $10.4 million at the end of the current quarter, while it was $14.8 million at the end of the prior quarter.
Robert Half paid its stockholders a cash dividend of 15 cents on March 15 at a cost of $21 million. The company had increased its quarterly cash dividend from 14 cents to 15 cents per share, as announced in early February.
The company also repurchased 1 million shares for a total of $29 million during the quarter. There are approximately 5.1 million shares remaining under the board approved stock repurchase plan.
Guidance
For the second quarter of 2012, the company expects its revenue to come in the range of $1.01 billion to $1.06 billion, while it expects its earnings in the range of 32 to 37 cents per share.
Based in Menlo Park, California, Robert Half provides staffing and risk consulting services in more than 400 locations in North America, South America, Europe, Asia, and Australia. Robert Half, which primarily competes with Manpower Inc. (MAN), currently holds a Zacks #1 Rank (a short-term ‘Strong Buy’ rating).
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