Robert Half International Misses on the Top and Bottom Lines

Robert Half International (NYSE: RHI  ) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Robert Half International missed slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share increased significantly.

Margins grew across the board.

Revenue details
Robert Half International chalked up revenue of $973.5 million. The 13 analysts polled by S&P Capital IQ looked for a top line of $989.5 million. Sales were 14% higher than the prior-year quarter's $851.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.30. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.31 per share on the same basis. GAAP EPS of $0.31 for Q4 were 76% higher than the prior-year quarter's $0.17 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 39.8%, 140 basis points better than the prior-year quarter. Operating margin was 7.4%, 240 basis points better than the prior-year quarter. Net margin was 4.4%, 150 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $989.7 million. On the bottom line, the average EPS estimate is $0.28.

Next year's average estimate for revenue is $4.13 billion. The average EPS estimate is $1.35.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 143 members out of 166 rating the stock outperform, and 23 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Robert Half International a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Robert Half International is outperform, with an average price target of $32.15.

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